The readings by the reactor are 400mS/hr. The average annual dosage is 3 mS.
Make your own mind up - the Japanese government have told all in 30km of Fukushima to stay inside.
Sensible precautions. Until it is determined what products are being released, how far the material is being spread, and the persistance of the radioactivity, it's common sense. Highly unstable radioactive material can produce extremely high levels of radiation at and close to the source, but these products are so unstable, they tend to vanish pretty quickly. What may be 400mS/hr at one distance, will be steadily reducing the further you get from the source. However, there may be more persistant particles with longer half lives that could present a much greater health risk.
When I was in the military doing Chemical, Biological, Radiological and Nuclear combat training, part of the Chemical part was dealing with what was known as "persistent agents". Chemicals that once disseminated, tended to hang about and present a risk. Some chemical agents were incredibly poisonous, yet were easily dispersed to harmless quantities (for example, some gaseous agents easily scatter to the wind into concentrations low enough to present very little risk). Something similar happens to radioactivity, except in this case it's to do with the stability of the product. Unstable, highly radioactive compounds don't "persist", they decay far too quickly. However, others can hang about a lot longer. It will pay to see what particles through analysis what exactly this reactor is chucking out.
In the meantime, it's entirely sensible to take all precautions necessary.