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I have recently been 'infected' (twice) with a backdoor proxy that was auto-installed through an IE hole. I run with medium security settings and active-x on prompt, I am also fully patched with critical updates, but still a web site was able to create and execute a file on my computer.
The second time it happened I downloaded Mozilla and now use it as my default browser. I don't plan to change back to IE until that hole is fixed.
One of the infections came off a cheater using Choker's galleryspots - imagine how many surfers were infected with that trojan, and since it's a proxy I think you can guess what the cheater is planning to use it for...
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