Potential Adobe Reader, Acrobat, and Flash Player issue
Adobe is aware of reports of a potential vulnerability in Adobe Reader and Acrobat 9.1.2 and Adobe Flash Player 9 and 10. We are currently investigating this potential issue and will have an update once we get more information.
http://blogs.adobe.com/psirt/2009/07/poten...er_and_fla.html

US-CERT Vulnerability Note VU#259425
with workarounds.
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The threat can be mitigated by using Mozilla Firefox with plugins such as NoScript.

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More info from Brian Krebs - Washington Post.
Update, 5:48 p.m. ET: Computer security firm Purewire writes in to say they have seen Web sites exploiting this vulnerability using poisoned Flash movies. According to them, not a single anti-virus product is detecting the malicious Flash file as harmful.