We were notified of this security issue (http://blog.vaultpress.com/2011/08/02/vulnerability-found-in-timthumb/) last night and have been working with Firehost then and today on patching all timthumb.php files with the fix. Page.ly customers do not need to do anything further, except keep being awesome.
If you are not a page.ly customer. Be sure to read that post and patch your files.
