Secunia

Multiple vulnerabilities have been reported in Internet Explorer, which can be exploited by malicious people to conduct cross-site scripting and phishing attacks, disclose sensitive information, bypass certain security restrictions, and compromise a user's system.

1) Insufficient validation of drag and drop events from the "Internet" zone to local resources for valid images containing script code can be exploited by e.g. a malicious web site to plant arbitrary files types on a user's system via a specially crafted "Content-Disposition" HTTP header with a dot appended in the filename.

This is related to:
SA12321

2) An error in the parsing of certain encoded URLs can be exploited to spoof the address bar and execute arbitrary HTML and script code in a user's browser session in context of an arbitrary site or security zone. This can further be exploited to execute arbitrary code.

Successful exploitation requires some user interaction.

3) An error in the validation of URLs in CDF (Channel Definition Format) files allows a "CHANNEL" tag to contain a reference to a "javascript:" URL. This can e.g. be exploited by a malicious web site to execute arbitrary HTML and script code in a user's browser session in context of an arbitrary site or zone, when a channel is added to the favorites.

Successful exploitation may allow execution of arbitrary code, but requires some user interaction.

This is related to vulnerability #3 in:
SA12048

4) An input validation error in the javascript function "createControlRange()" can be exploited by e.g. a malicious web site to corrupt memory in a way, which allows the program flow to be redirected to the heap.

Successful exploitation allows execution of arbitrary code.

5) Insufficient cross-zone restrictions can be exploited to link to local resources, when a user clicks a link on e.g a malicious web site.

6) An error in the handling of web sites inside the "Temporary Internet Files" folder can be exploited to cause a page to be loaded in context of the "Temporary Internet Files" folder, when a user clicks a link on e.g. a malicious web site.

Further exploitation involves gaining knowledge of a user's username and retrieving documents found inside the "Temporary Internet Files" folder.

7) A parsing error in the "codebase" attribute of the "object" tag can be exploited to execute local files with any file extension from the "Local Computer Zone" by appending "?.exe".

NOTE: A combination of vulnerabilities #5, #6, and #7 can be exploited to execute arbitrary code in Internet Explorer running on Windows 2000 and Windows XP SP1 when combined by a weakness in a third-party software, which stores malicious files in a predictable location.

Solution
Apply patches.
Further details available in Customer Area

Provided and/or discovered by
1) Independently discovered by:
* Andreas Sandblad, Secunia Research.
* Michael Krax

2) Jouko Pynnönen
3) Paul (greyhats)
4, 5) Andreas Sandblad, Secunia Research.
6, 7) Independently discovered by:
* Andreas Sandblad, Secunia Research.
* Internally by Microsoft

Changelog
Further details available in Customer Area

Original Advisory
MS05-014 (KB867282):
http://www.microsoft.com/technet/security/bulletin/ms05-014.mspx

Other references
Further details available in Customer Area

Deep Links
Links available in Customer Area