"Does anyone here recall any published news articles or incidents
involving mainframe hacking (any flavor of VM, VSE or MVS)?  Do you
personally know of any incidents?"

http://www.hackcanada.com/canadian/zines/upi/upiissue2-6.txt
(Warning this may be a site for hackers, firewalls may object)

Search for text starting at "Virus Helped United States Win Gulf War"

The technique that is discussed there is now rumored to be applied by using
infected graphic cards' firmware, not printers. It was also rumored that the
3174 communications controller had a hack that would allow surreptitious
access. Monitors or 3270 class terminals have been injected with devices
that send a radio signal containing an image of whatever is displayed on the
screen including non-display fields (allegedly). 

Finally, on a different, but related note, there have been rumors that the
z/Series encryption implementation has been misdirected for use to crack
encrypted data.

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