Microsoft Internet Explorer Valid File Drag and Drop Embedded Code Vulnerability
The Microsoft cumulative Internet Explorer patch (MS04-038) attempted to limit what files may be dragged and dropped onto the local computer from the Internet Zone to prevent executable objects from being placed on the file system in this manner.
However, a number of file types are still permitted for drag and drop operations. It has demonstrated that it is possible to embed hostile HTML and script code in one of these file types, remove the file extension and then allow the operating system to dynamically determine the file type based on its contents.
If this issue were combined with other vulnerabilities, such as that described in BID 11467, it may result in execution of arbitrary code on the client computer.
Both Internet Explorer and Microsoft Windows itself is affected by this vulnerability.