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Direct/X vulnerability, of some concern. Secunia has a good overview here.

CERT has this:

By convincing a user to view a specially crafted HTML document (e.g., a web page or an HTML email message or attachment), an attacker may be able to execute arbitrary code with the privileges of the user. The attacker could also cause Internet Explorer (or the program using the WebBrowser control) to crash.

We are currently unaware of a practical solution to this problem. Please consider the following workarounds

Disable the FlashPix ActiveX control in Internet Explorer

The vulnerable ActiveX control can be disabled in Internet Explorer by setting the kill bit for the following CLSID:

{201EA564-A6F6-11D1-811D-00C04FB6BD36}

More information about how to set the kill bit is available in Microsoft Support Document 240797. Alternatively, the following text can be saved as a .REG file and imported to set the kill bit for this control:

Windows Registry Editor Version 5.00

    [HKEY_LOCAL_MACHINESOFTWAREMicrosoftInternet ExplorerActiveX Compatibility{201EA564-A6F6-11D1-811D-00C04FB6BD36}]
    "Compatibility Flags"=dword:00000400

Disable ActiveX
Disabling ActiveX controls in the Internet Zone (or any zone used by an attacker) appears to prevent exploitation of this and other ActiveX vulnerabilities. Instructions for disabling ActiveX in the Internet Zone can be found in the “Securing Your Web Browser” document.

The issue of zero day exploits has become a bit ominous with their use in web attacker frameworks (mpack, etc.). Zero days get rolled into the new versions of the attacker frameworks, giving malware distributors and authors something pretty close to “plug and play” attack frameworks.

We have not observed this exploit in the wild.

Alex Eckelberry
(Hat tip to Jose Nazario)

Clarification: I don’t see this as being a big issue, as it requires the DirectX SDK (not a lot of people running that).