Windows XP Explorer Executes Arbitrary Code in Folders

"A vulnerability was reported in Microsoft Windows XP in Windows Explorer. A remote user can create a folder that, when viewed by the target user, will execute arbitrary code on the target user's system.

http-equiv reported that a remote user can create a specially crafted 'folder' that includes HTML scripting code and a Windows executable ('.exe' file) containing arbitary code. When a target user attempts to view the contents of the 'folder' (which may be considered an ostensibly safe task by many users), the arbitrary code will be automatically executed on the target user's computer by Windows Explorer. The code will run with the privileges of the target user."

MSFN - Windows XP Explorer Executes Arbitrary Code in Folders