I really think this is panic-mongering. As mentioned above, the AIDS virus is quite fragile. You can't get it from casual contact unless it enters into the bloodstream (which is why you can't get it from a toilet seat but you could possibly get it from kissing). The article says the remains are "unpreserved" so in what way does this suggest anything that is "still living?"

The media loves gruesome stuff like this and after the crematorium debacle a few months' back, this sort of story is even more popular. Think about why the AIDS virus is mentioned in the first paragraph: a negligible risk, when other diseases are MUCH more likely, such as encephalitis...