TimThumb exploit in Network Theme

Hi wonderful peeps of this forum. I just got the following email from Bluehost, about my site that I'm running on Network

What does it mean for me practically with regards to this theme and to continue running it?
Thanks
Haroun

This is a courtesy notice that we have found and corrected exploitable timthumb.php file(s) on your mysticohana.com account, which are listed below. While we have corrected these files, we do recommend you ensure all potential exploits are corrected on your account. This is best done by updating all scripts, plugins, modules and themes on your account to the latest version.

As the owner of the account, you are responsible for keeping your hosted content free of malicious software. For technical assistance, you can also reach our chat team from Bluehost.com or by going directly to:

http://www.bluehost.com/chat

The timthumb.php file is a script commonly used in WordPress's (and other software's) themes and plugins to resize images. The exploit allows an attacker to arbitrarily upload and create files and/or folders on your account, which can then be used for a number of malicious tasks, including but not limited to defacement, browser high-jacking and infection, data harvesting and more. After a site has been exploited, it may lead to becoming labeled a "Malicious Website" by Google or other security authorities.

Any timthumb.php file below version 1.35, but above version 1.09 is considered vulnerable, unless patched. To prevent being compromised, we advise you update all instances of timthumb.php to version 2.0, or patch the existing vulnerable files. Note that patching the files requires more in-depth knowledge of the PHP scripting language.

The updated version of timthumb.php can be found here:

http://timthumb.googlecode.com/svn/trunk/timthumb.php

We have automatically patched the following files for you:

/home5/mysticoh/public_html/wp-content/themes/network/library/functions/timthumb.php

Additional information regarding the compromise can be found at the following two websites, as well as others; note that all external websites in this email are not affiliated with Bluehost.com in any capacity, and are for your reference only.

http://markmaunder.com/2011/08/01/zero-day-vulnerability-in-many-wordpress-themes/
http://redleg-redleg.blogspot.com/2011/08/malware-hosted-newportalsecom.html