While the open hotmail in default thread is running rampant, I thought I would also shed some light on this issue, which may affect browsers based on the IE engine if they are set to use SP2's new security features.
It has nothing to do with Windows Firewall, but rather a new security "feature" called local machine lockdown. Basically it stops html files on your computer running javascript and other active content. It does this to reduce the damage that can be caused by various IE security holes (of course what they should have done is fix the holes so this wasn't necessary. It is ridiculous that the local machine zone allows less than the internet zone).
Also there is no way to add individual pages on you computer into a "trusted zone" like you can for a page on the internet
Anyway, it can be solved in a few ways:
You can adjust your IE security settings to disable local machine lockdown. This is not recommended as it could/will open up security holes
TheBlasphemer could make SPNG add a "mark of the web" to the temp file it creates to log you into hotmail. This will cause IE to view the file as if it was in the internet or local intranet zone, which will allow scripting. (Recommended
)
You could make the changes yourself, but this is probably violating the license agreement (I think some countries allow modifications to fix bugs regardless of the license agreement, but don't take my word for it) (Not recommended)
I have not given instructions for any of these as you will likely stuff up you computer/SPNG/open up security holes if you don't know what you are doing
