It seems that even though I just upgraded yesterday with the release WordPress, the hacker who went around hacking SEO Blogs had discovered an exploit in WordPress. They immediately rolled out a new version and I suggest you upgrade to their latest version, 2.0.7: http://wordpress.org/download/
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The attacker didn’t discover this flaw, it has been public for almost a week now. This is just an example of how some idiots take advantage of full disclosure and run publicly available exploits on blog owners who were unaware of it’s existence.
Well that was a definitely an idiotic thing to do. If you found an exploit in a well known software like phpBB or WordPress in this case, you should report it to the script creators and after the problem is fixed you can take credit for finding the exploit..