CRE stands for Carbapenem-Resistant Enterobacteriaceae, a family of bacteria that includes E. coli and Klebsiella pneumoniae. Carbapenem is an antibiotic of last resort when most other antibiotics no longer work, and Klebsiella seems to have found a way to neutralize it. So far, Klebsiella is found only in hospitals, where equipment or personnel can harbor these hard-to-transmit bugs; the wider community is not yet at significant risk. But the big danger is that Klebsiella will pass their antibiotic-neutralizing skill on to other bacteria (see this blog, Apr. 7, 2011), leading to much wider outbreaks than we've seen so far.
This little outbreak is not likely to be the last.