If you have TimThumb active either through a theme or a plugin (a lot of them use it), you might want to read this article carefully - but first here's the exec summary:
An image resizing utility called timthumb.php is widely used by many WordPress themes. Google shows over 39 million results for the script name.
If your WordPress theme is bundled with an unmodified timthumb.php as many commercial and free themes are, then you should immediately either remove it or edit it and set the $allowedSites array to be empty.
The utility only does a partial match on hostnames allowing hackers to upload and execute arbitrary PHP code in your timthumb cache directory.
We all have a few themes besides Catalyst installed, I just checked some of mine and they all use timthumb.php as well as quite a few plugins. Until the theme is activated I doubt it's going to be a problem, but if the report is accurate, active plugins which use the script could be suspect and I had two active on quite a few sites.
I can't validate the contents of the article, but to be safe I've edited all my timthumb scripts just in case.
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