The outcome of a viral infection ranges from benign to fatal with the clinical pictures being very diverse. This is largely due to the virus-cell interactions that occur in the infected organism. Rapidly after infection, cells initiate a first line of defense against the virus. The cells sense viruses through several mechanisms. Among these the ability to respond to accumulation of double-stranded RNA has been particularly well studied and seems to be of importance. On the other hand, the close co-existence of virus and host has allowed viruses to develop mechanisms to down-modulate the initial reaction or to exploit this proinflammatory response in its own advance. This review describes how virus infections affect cellular signal transduction and the mechanisms through which certain viruses modulate this response to dampen the immune response or prevent cell death.