The latest WordPress release is a security fix with three bug fixes. It came out November 25, 2008 and is a recommended upgrade.
But do *you* really need to upgrade? According to WordPress, the XSS security issue that prompted this upgrade, “…only affects IP-based virtual servers running on Apache 2.x.”
So the answer is that if your site is running on a shared server (and most sites are), the security issue won’t affect your installation. The security issue only affects websites that are using a dedicated IP address (most sites are not).
So my official recommendation is always to be safe and go with what WordPress.org recommends. This is a recommended upgrade for everyone, so that is Blog Solace’s official stance. You can make your own decision about what is right for you and your blog/site.