Texmod uses "virus" like methods to infect running games, so any scanner that uses heuristics or w/e to scan for potential threats will say it's problematic, even though it is not. FRAPS uses the same thing, and FRAPS probably gets just as many false positives.
Yep, it's no virus. Turn off your virus scanner, if it has a background scanner running. McAfee does and sees it as a virus, so I have to turn that feature off before I run it.