Our network is currently blocking all Flash content due to a Flash-based virus circulating. Has anyone else heard of this?

No I haven't heard of such a virus. Do you have a good antivirus program installed to remove this?

We have enterprise MacAfee at work. It appears that they blocked all Flash at the edge of our network, probably with the Websense appliance. Flash was allowed by the end of today.

I did find this: Adobe Flash drive-by attacks redux | Zero Day | ZDNet.com (http://blogs.zdnet.com/security/?p=1198)
We must have a had a few infections for them to do that.