Apple has released Java for Mac OS X 10.7 Update 1 and Java for Mac OS X 10.6 Update 6. In both cases, the updates address about a dozen security vulnerabilities, including one that could allow an untrusted Java applet to execute arbitrary code outside of the Java sandbox. (Free, 62.53 MB and 75.45 MB)
Mac OS X Zip Expanding Utility
Firefox (and possibly other applications) may ask you what you want to do with .zip archives that you download from the Internet. If you want to expand them with Mac OS X (rather than StuffIt Expander), you may be unsure of which application actually does the job. You're looking for Archive Utility (in Leopard and later) or BOMArchiveHelper (in Tiger). In either case, the application is stored in Hard Drive/System/Library/Core Services/. Don't move it from there, though, or you'll confuse matters.
Java for Mac OS X 10.7 Update 1 and Java for Mac OS X 10.6 Update 6
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Comments about Java for Mac OS X 10.7 Update 1 and Java for Mac OS X 10.6 Update 6
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All that said, unless you actually use Java much, or run into Java on the Web a lot, this Java update probably isn't a really important thing to have.