Wildhoney, yeah. That code that I posted, I found it at the very bottom of the index.php. Its actually there its not like fetched from another location.

Ill just say it, Im not really that familiar with any other kind of attacks other than the sql thing.

Also, its a shared server at Lunarpages.

EDIT:

The same thing happened a week ago. But the coding was slightly different, I wasnt able to save a copy of it. But all i remember was what it does. It embeds an iframe that sorta runs a javascript function at another site. All of this was constructed using javascript letter by letter almost. I found out about it when I went to index page and the antivirus detected it. I unescaped the injected code and checked the domain on where it points to and its some company in asia, singapore I think, I cant rememeber. And it was on the same location, at the very end of the index.php