It is strongly suggested to disable Java till a patch is available.
Other articles on it:
- Ars (~General Audience) http://arstechnica.com/security/2012/08/critical-flaw-under-active-attack-prompts-calls-to-disable-java/
- Erratica Security (~Coder/Computer Nerd level) http://erratasec.blogspot.com/2012/08/new-java-0day.html
- Krebs (update) http://krebsonsecurity.com/2012/08/attackers-pounce-on-zero-day-java-exploit/
Edited to add:
Windows users guide for disabling Java http://antivirus.about.com/od/securitytips/ht/How-To-Disable-Java-In-Internet-Explorer.htm
Mac users guide to disable Java in Chrome, Firefox, & Safari http://www.maclife.com/article/howtos/how_disable_java_your_mac_web_browser
For Chrome cut and paste about:plugins into the url bar, I couldn't figure out any other way to get there, there probably is but this is easy.
If you have any problems check both links in this section, the browsers work pretty much the same on Windows or Mac.
Or post question in comments and I will try to help.