Correct, this was a 'security update' of May 2006, to prevent Active X content etc from executing automagically.
Basically - anything nestled between an OBJECT or an EMBED tag will get parsed out to the 'click to activate box'.
Obviously this is most frustrating with embedded movies, or flash.
There are a couple of solutions - basically involving javascript to write the active content to the page. Adobe / Macromedia provide some of the better / best solutions that I've seen so far [simple solutions, and more involved ones]
See
http://www.adobe.com/devnet/activeco...devletter.html for all the info you need.