Oracle did what all of us were hoping they would do - release an out-of-band patch for the latest Java zero-day vulnerability. The new version of Java, 1.7.0_07 and 1.6.0_35, both fix the vulnerabilities mentioned in CVE-2012-4681 that we've blogged about here and here. We have tried the patch and verified that it works as designed.
If you need Java we recommend that you install this update immediately. If you have no need for Java we recommend that you uninstall Java all together instead if you haven't already done so. More information from Oracle about the vulnerability and patch is available in their security alert.