Vulnerability in Windows Shell

Microsoft says that they're investigating reports of limited, targeted attacks exploiting a vulnerability in Windows Shell. "The vulnerability exists because Windows incorrectly parses shortcuts in such a way that malicious code may be executed when the user clicks the displayed icon of a specially crafted shortcut. This vulnerability is most likely to be exploited through removable drives. For systems that have AutoPlay disabled, customers would need to manually browse to the root folder of the removable disk in order for the vulnerability to be exploited. For Windows 7 systems, AutoPlay functionality for removable disks is automatically disabled." By exploiting the vulnerability an attacker may be able to execute arbitrary code in affected system.

Affected operating systems are:
- Windows XP Service Pack 3
- Windows XP Professional x64 Edition Service Pack 2
- Windows Server 2003 Service Pack 2
- Windows Server 2003 x64 Edition Service Pack 2
- Windows Server 2003 with SP2 for Itanium-based Systems
- Windows Vista Service Pack 1 and Windows Vista Service Pack 2
- Windows Vista x64 Edition Service Pack 1 and Windows Vista x64 Edition Service Pack 2
- Windows Server 2008 for 32-bit Systems and Windows Server 2008 for 32-bit Systems Service Pack 2
- Windows Server 2008 for x64-based Systems and Windows Server 2008 for x64-based Systems Service Pack 2
- Windows Server 2008 for Itanium-based Systems and Windows Server 2008 for Itanium-based Systems Service Pack 2
- Windows 7 for 32-bit Systems
- Windows 7 for x64-based Systems
- Windows Server 2008 R2 for x64-based Systems
- Windows Server 2008 R2 for Itanium-based Systems


More information about the vulnerability and workarounds can be read from the correspondent security advisory.

Other references:
http://www.kb.cert.org/vuls/id/940193
http://krebsonsecurity.com/2010/07/experts-warn-of-new-windows-shortcut-flaw/