I updated WordPress today as a result of what happened to my friends. I figured it was better safe than sorry, especially if it was the XML injection Chip mentioned. I was already up to date with 2.3.3 but now we’re running the hot out of the oven 2.5. For those of you needing to update as well, let me recommend the WordPress Automatic Updater.
Really a slick deal. It backs up your core files, your database, your plugins, rolls them all into a zip so you can download them, downloads the most current install, stops your plugins, updates the install and restarts everything for you. Very handy. Took me 2 minutes to update and I didn’t even have to download the install ahead of time.
I’ll give you my impressions of 2.5 later, but I just wanted to pass on that tidbit in case anyone else is updating in the near future.