Project Disclosure

All software contains bugs. A subset of those bugs are security flaws that allows a malicious individual to cause software to do something it shouldn't do. The best example of this is when a remote attacker leverages a flaw in a public facing service (web server or mail server for example), which then allows them access to machine resources.

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The upper page has a couple of external links on the topic.

What is a Security Flaw

A security flaw is most easily described as a bug, when given the right circumstances, could lead to the compromise of confidentiality, integrity, or availability of computing resources.

Dealing with Researchers

Be Polite and Understanding
Ask for their help
Provide proper credit