As expected, Yahoo Search Marketing has launched their blocked domains feature. Advertisers can now block up to 250 sites from showing their ads on the content network.
The Yahoo Search Marketing help page has detailed instructions on how to block domains. In short, go to your accounts page under administration tab and click on the "Submit Domains".
Then you will see this page, which will allow you to block up to 250 domains, subdomains or pages.
Forum discussion at WebmasterWorld, DigitalPoint Forums and Search Engine Watch Forums.