Unlike earlier versions of Internet Explorer, which have access to the operating system and running applications, Internet Explorer 7 operates in a protected mode, which isolates it from other applications in the operating system and prevents add-ons from writing content in any location beyond temporary Internet files folders without explicit user consent. Isolating Internet Explorer from other applications and restricting write locations prevents many types of malicious software from exploiting the computer. To further protect Windows Vista computers from malicious software, many other safeguards are in place, including:
Understanding the Internet Explorer Add-Ons Restrictions
By default, ActiveX controls that can run in Internet Explorer 7 are limited. Preinstalled ActiveX controls are disabled by default to prevent potentially vulnerable controls from being exposed to attack. Internet Explorer also has a special Add-Ons Disabled mode in which all browser extensions and add-ons are disabled (except for critical add-ons that are part of the browser core components). To start Internet Explorer in Add-Ons Disabled mode, click Start, point to All Programs, Accessories, System Tools, and click Internet Explorer (No Add-Ons), or rightclick the Internet Explorer icon on the desktop and select Internet Explorer (No Add-Ons).
Internet Explorer 7 also makes its easier for you to manage installed add-ons by using the Manage Add-Ons dialog box. These changes allow you to easily determine which add-ons have been downloaded and installed as well as which add-ons are currently loaded in Internet Explorer. Most downloaded add-ons can be easily disabled and deleted as well.
To view and manage downloaded add-ons, follow these steps:
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In Internet Explorer, click Tools, click Manage Add-Ons, and then select Enable Or Disable Add-Ons.
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In the Show drop-down list, select Downloaded ActiveX Controls.
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Click the downloaded add-on you want to work with.
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To disable the add-on, click Disable. The add-on is then prevented from running in Internet Explorer.
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To delete the downloaded add-on, click Delete ActiveX. The add-on is then permanently removed from Internet Explorer
Understanding the Internet Explorer Domain and URL Restrictions
Internet Explorer 7 supports both standard English domain names and internationalized domain names. English domain names are domain names represented using the letters A–Z, the numerals 0–9 and the hyphen. Internationalized domain names are domain names represented using native language characters.
Because Internet Explorer supports internationalized domain names, Microsoft wanted to find a way to help ensure that international characters aren’t used to make a site seem like something it isn’t. This is where international domain name anti-spoofing comes into the picture. International domain name anti-spoofing is designed to protect you against sites that could otherwise appear as known, trustworthy sites. If you visit a site that uses characters that are visually similar to a known trusted site, Internet Explorer displays a warning notification.
Another protection added to Internet Explorer has to do with URL handling. Internet Explorer 7 features a redesigned URL handler, which protects the computer from possible URL parsing exploitations, such as URLs that attempt to run commands or URLs that perform suspect actions.
source- http://www.windowsvistasecrets.info/