Drupal Announced its release of Drupal 7.16 Core update maintenance release on 17th Oct 2012. This upgradation is strongly recommended as it addresses the 'Arbitrary PHP code execution'. There are no new features or non-security-related bug fixes in this release.
Versions affected: Drupal core 7.x versions prior to 7.16, Drupal 6 is not affected.
If you do not wish to upgrade to Drupal 7.16 immediately, removing or blocking access to install.php is a sufficient mitigation step for the arbitrary PHP code execution vulnerability.
Yes you can delete the install.php and the below listed files from your server once the Drupal installation is successful. This should not affect your site. Make sure You do not delete the update.php file.
Site owners using cpanel with softaculous will have to wait till automatic one click upgrade to Drupal 7.16 is available.
Update :Drupal 7.17 upgrade is available for softaculous.