IE Windows vuln coughs up local files.
If you use any version of Internet Explorer to surf Twitter or other Web 2.0 sites, Jorge Luis Alvarez Medina can probably read the entire contents of your primary hard drive.
The security consultant at Core Security said his attack works by clicking on a single link that exploits a chain of weaknesses in IE and Windows. Once an IE user visits the booby-trapped site, the webmaster has complete access to the machine's C drive, including files, authentication cookies - even empty hashes of passwords
Source - IE Windows vuln coughs up local files ? The Register