IE version 5.x, 6.0
A remote user can cause IE to inject arbitrary HTML into the "My Computer" zone on Windows 98 systems by exploiting the "Web Folder" component of IE. Code can be made to traverse the web folder. If the web folder does not exists, IE will reportedly place an error message in the temporary folder. So, code can be written to probe for or test vulnerable systems. This can cause HTML code, including ActiveX scripting, to be executed in the Local Computer zone.
No solution was available from Microsoft at this time.