Microsoft Internet Explorer 5.01 SP4, 6, 6 SP1, 7, and 8 does not prevent rendering of non-HTML local files as HTML documents, which allows remote attackers to bypass intended access restrictions and read arbitrary files via vectors involving JavaScript exploit code that constructs a reference to a file://127.0.0.1 URL, aka the dynamic OBJECT tag vulnerability, as demonstrated by obtaining the data from an index.dat file, a variant of CVE-2009-1140 and related to CVE-2008-1448.
https://oval.cisecurity.org/repository/search/definition/oval%3Aorg.mitre.oval%3Adef%3A7145
https://docs.microsoft.com/en-us/security-updates/securitybulletins/2010/ms10-035
http://www.us-cert.gov/cas/techalerts/TA10-159B.html
http://www.securityfocus.com/bid/38056
http://www.securityfocus.com/bid/38055
http://www.securityfocus.com/archive/1/509345/100/0/threaded
http://www.microsoft.com/technet/security/advisory/980088.mspx
http://support.avaya.com/css/P8/documents/100089747
http://isc.sans.org/diary.html?n&storyid=8152
http://blogs.technet.com/msrc/archive/2010/02/03/security-advisory-980088-released.aspx