Hi Thomas - I can add some informaion to the mystery as well. Yesterday, I was browsing wowhead.com, a data reference site for World of Warcraft which is well known and respected and I've never heard of anyhing shady originating from them, so I thought nothing of it when suddenly the page I was on had a message float across it stating that my copy of Adobe Flash must be updated in order to view the content on the page. There are often flash-based video ads in the margins, so this did not arrouse my suspicion, that plus the fact that Flash seems to update once a week anyway.
A few strange things occured though that tipped me off that this was not genuine. First, there were several link buttons on this little floater, such as Flash Players alleged home page, one saying "Best version for your sysem" and just a simple "Download Now", and all 3 linked to downloading a file named "InstallGenio.dmg", ~700k file.
Obviously, this is not a Flash Player installer, and I stayed the **** away from it. So it seems to be getting on to people's compuers insidiously, masquerading as Flash Player. This was my experience, anyway, and I emailed the admin of the WoWhead site to make sure they are aware that it is getting out through their site, as I expeced they were probably clueless as it likely hitched a ride in on one of their advertisers pieces of content displayed on the wowhead user pages.
Based on all the stories here, I'd imagine this thing is running rampant or at least near full on rampant all over the web due to the many different sources people obtained it from. Everyone had better sound the alarm and let their less savy and observant friends NOT to accept any Flash Player updates unless it's from Adobe's webpage itself, for now at least.