Finally an official response from Symantec/Norton has been released regarding PIFTS.EXE. Theys says that PIFTS.EXE is not a virus , an human error caused this file remained "unsinged" by Norton while releasing and this cause firewalls like ZoneAlarm to block its access.
Sophos is also confirming that it might be an human error and nothing serious.
Here is the official response from Norton.