UPDATE:

Adobe has since released an update of Flash player to patch this critical vulnerability. All you have to do is simply update your Flash player to the current edition with no worries.

The patched update for Adobe Reader will be arriving sometime later at the end of June.

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Adobe issued an alert late Friday night to warn about zero-day attacks against an unpatched vulnerability in its Reader and Flash Player software products. The vulnerability, described as critical, affects Adobe Flash Player 10.0.45.2 and earlier versions for Windows, Macintosh, Linux and Solaris operating systems.   It also affects the authplay.dll component that ships with Adobe Reader and Acrobat 9.x for Windows, Macintosh and UNIX operating systems, Adobe said.

Adobe has stated:

"This vulnerability (CVE-2010-1297) could cause a crash and potentially allow an attacker to take control of the affected system. There are reports that this vulnerability is being actively exploited in the wild against both Adobe Flash Player, and Adobe Reader and Acrobat."

http://www.zdnet.com/blog/security/adobe-warns-of-flash-pdf-zero-day-attacks/6606

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However, the 'release candidate' version of the flash player seems to be unaffected by the attack. As flash is used in a variety of websites, I urge all of you to download and install the release candidate version. Caution: release candidates can have a few bugs, but these bugs are NOT a security risk.

http://labs.adobe.com/downloads/flashplayer10.html#flashplayer10

The older versions (8.x) of Adobe Reader and Acrobat are confirmed to not be vulnerable.

I have already installed the release candidate and have not had any problems so far.

If you have any questions, let me know and I'll be glad to reply.