thats weird on all the pcs that ive installed sp2, when i try to run a program from the desktop it asks me and i say dont ask me again, and it asks me again for exe files later on they should fix that!
heise Security has notified Microsoft about both issues on August 12. Microsoft Security Response Center responded:
"We have investigated your report, as we do with all reports, however in this case, we don't see these issues as being in conflict with the design goals of the new protections. We are always seeking improvements to our security protections and this discussion will certainly provide additional input into future security features and improvements, but at this time we do not see these as issues that we would develop patches or workarounds to address."
It's not a really a flaw now is it. It's a local issue and provides very little usefulness in terms of attack. You would still have to normally execute the malware! If you downloaded Malware this is the area you want your AV to step in before execution and before a prompt by XP!
You have to be aware people are going to look for the slightest issue and make a big deal of it. I agree with Microsoft's classification and response to this, it's hardly worthy of the attention it's getting on tech sites.