There's another big problem hitting the linux world. This time its with Zlib. This is big since it deals with all the network compression. So someone would buffer overflow in many apps. I'd upgrade. here is a link to the redhad advisory

http://www.linuxsecurity.com/advisories/redhat_advisory-1963.html

How come no one has came out with a BUG FREE or Eploit FREE OS yet?

mainly cause humans write the code and as you know we are far from perfect

Incidentally, this issue is rather different from most in that the most obvious exploit vector is for a server to pass a malformed file to a client.

Theoretically, you could create a "PNG of death" which would destroy any (unpatched) linux system on which it was displayed. ;)