There are 5 critical bugs which allows untrusted applets to break out of the sandbox.
Three of those bugs (bug-IDs 6263857, 6277266 and 6277659) are related to reflection stuff, another one (bug 6268876) is in Java Management Extensions (JMX). And the last one (6243400) seems to be more general.
Affected versions (win, solaris and linux):
BugID 6243400: JDK/JRE 5.0 Update 3 BugID 6268876: JDK/JRE 5.0 Update 3 BugID 6263857: SDK/JRE 1.3.1_15, 1.4.2_08, JDK/JRE 5.0 Update 3 BugID 6277266: SDK/JRE 1.4.2_08, JDK/JRE 5.0 Update 3 BugID 6277659: SDK/JRE 1.4.2_08, JDK/JRE 5.0 Update 3
(including prior versions)
Sun suggests to upgrade to JDK/JRE 5.0 Update 4 or SDK/JRE 1.4.2_09. Currently there are already JDK/JRE 5.0 Update 5 and SDK/JRE 1.4.2_10 available.
See this advisories for details:
Security Vulnerabilities in the Java Runtime Environment
Security Vulnerability With Java Management Extensions in the Java Runtime Environment
Security Vulnerabilities in the Java Runtime Environment 2
Source: news on heise.de (german)

