OK, a heads up that the update has now started, and will be completed over the next three to four days - per the Inside AdWords blog post about 20 minutes ago.
The AdWords blog post says that the algorithm is now live and it will take about three to four days to fully propagate throughout the network.
If you have not enabled the quality score column, you probably should. To do that, just go down to your ad group level, click on the keywords tab on the top right, then select from the pull down menu the option to show the quality score. Here is a screen capture with arrows pointing to the relevant places but more on that at AdWords help.
Now I will sit back and watch the forum chatter over the next few days. I am sure minimum bids will both increase and decrease. I just wonder at what level. I will keep you updated on the SEM buzz on this.
Forum discussion at WebmasterWorld.