Hacked: All accounts created are administrator

You need to start working your way through these resources:
http://codex.wordpress.org/FAQ_My_site_was_hacked
http://wordpress.org/support/topic/268083#post-1065779
http://smackdown.blogsblogsblogs.com/2008/06/24/how-to-completely-clean-your-hacked-wordpress-installation/
http://ottopress.com/2009/hacked-wordpress-backdoors/

Additional Resources:
http://sitecheck.sucuri.net/scanner/
http://www.unmaskparasites.com/
http://blog.sucuri.net/2012/03/wordpress-understanding-its-true-vulnerability.html

Have you ever seen all the accounts automatically upgraded to admin?

Only on sites where the database has been hacked/altered. Have you tried:

– deactivating all plugins to see if this resolves the problem. If this works, re-activate the plugins one by one until you find the problematic plugin(s).

– switching to the Twenty Eleven theme to rule out any theme-specific problems.

– resetting the plugins folder by FTP or PhpMyAdmin. Sometimes, an apparently inactive plugin can still cause problems.