I know this is a little late in the game, but the URL mentioned for the JavaScript is mentioned in a list of sites known to have been part of the ASPRox bot resurgence that started up in June (at least that's when we were getting flagged with it). Some details about it are mentioned below:
http://www.bloombit.com/Articles/2008/05/ASCII-Encoded-Binary-String-Automated-SQL-Injection.aspx
The nasty thing about this is that effectively every varchar type field in the database is "infected" to spit out a reference to this URL, in which the browser gets a tiny iframe that turns it into a bot. A basic SQL fix for this can be found here:
http://aspadvice.com/blogs/programming_shorts/archive/2008/06/27/Asprox-Recovery.aspx
The scary thing though is that the virus looks to the system tables for values to infect and a lot of shared hosting plans also share the database space for their clients. So most likely it wasn't even your dad's site that was infected, but somebody else's site within his hosting cluster that wrote some poor code and opened the door to SQL Injection attack.
If he hasn't done so yet, I'd send an URGENT e-mail to their host and give them a link to that SQL code to fix the entire system. You can fix your own affected database tables, but most likely the bots that are doing the infection are going to pass right through that hole again and infect the whole lot.
Hopefully this gives you some more info to work with.
EDIT: One more quick thought, if he's using one of the hosts online design tools for building his website, all of that content is probably sitting in a column and was infected that way.