How do I use this feature?

Open your adsense account, go to adsense setup, click the “Allowed Sites” link in the header and then select the “Only Allow……” option and then type in all the urls you want your pub-id to work on.

This will prevent so much abuse and win back alot of smaller publishers that I dont understand why Google didn’t take measures like this sooner.  Of course there is still the possibility that someone could just click your ads a whole bunch, so be sure to either track your clicks and try not to depend so much on adsense for your sites income.

Do yall think this will cut down on most of the click abuse?

In the current top ad placement formula, we consider your Quality Score and your actual CPC, which is determined in part by the bids of advertisers below you. Even if you have a high quality ad, if advertisers below you are not bidding very much, your actual CPC may not be high enough to qualify your ad to appear in a top position.

With this new formula, instead of considering your actual CPC, we’ll consider your maximum CPC bid, which you control. This means that your ad’s eligibility to be promoted is no longer dependent on the bids of advertisers below you. Therefore, if you have a high quality ad, you now have more control to achieve a top position by increasing your maximum CPC.

Your actual CPC will continue to be determined by the auction, but subject to a minimum price for top spots. The minimum price is based on the quality of your ad and is the minimum amount required for your ad to achieve top placement above Google search results. As always, the higher your ad’s quality, the less you will pay. And you will never be charged more than your maximum CPC bid.

What Im taking that to mean is the higher your ctr and the more relevant your ad copy is to your keywords the higher you’ll place for a low cpc.