Complex sentence: They named the worm Code Red because they were drinking Pepsi's Mountain Dew Code Red over the weekend they analyzed it and because of the phrase "Hacked by Chinese!" with which the worm defaced websites.
Split into simpler sentences: They named the worm CodeRed because they were drinking Pepsi's Mountain Dew CodeRed over the weekend they analyzed it and because of the worms references to China. Specifically the worm code contained the phrase "Hacked By Chinese!" with which the worm defaced websites.