TimThumb (timthumb.php) before 2.0 does not validate the entire source with the domain white list, which allows remote attackers to upload and execute arbitrary code via a URL containing a white-listed domain in the src parameter, then accessing it via a direct request to the file in the cache directory, as exploited in the wild in August 2011.
http://www.openwall.com/lists/oss-security/2011/11/03/4
http://www.binarymoon.co.uk/2011/08/timthumb-2/
http://markmaunder.com/2011/08/02/technical-details-and-scripts-of-the-wordpress-timthumb-php-hack/
http://markmaunder.com/2011/08/01/zero-day-vulnerability-in-many-wordpress-themes/