I just love this bit from the MS release:

<quote>
Because of these changes to the core operating system of Windows XP and
of Windows Server 2003, extensive changes to file permissions on the
root of the operating system are no longer required.

Additional ACL changes may invalidate all or most of the application
compatibility testing that is performed by Microsoft. Frequently,
changes such as these have not undergone the in-depth testing that
Microsoft has performed on other settings. Support cases and field
experience has shown that ACL edits change the fundamental behavior of
the operating system, frequently in unintended ways. These changes
affect application compatibility and stability and reduce
functionality, both in terms of performance and capability.
</quote>

This is called FUD. Microsoft has not once BOTHERED to investigate and
publish least privilege on their OS. Here in DoD land the
NSA/DISA/ArmedService' "hardening" guidelines are nearly silent on the
matter of fixing the sad excuse that is windows filesystem security.
Mostly because M$ itself has never published anything. To be fair, it's
improved a little bit since NT4 but LocalSystem in particular has WAY
too much access. Of course the vendor doesn't want you to change
anything. They can't be bothered to configure their OS correctly to
begin with.

If M$ wanted to they could ship Vista with proper filesystem
permissions out of the box and nobody would notice. They just can't be
bothered. Afterall, when you have such a disorganized OS going 16
different ways, and an ISV community that has for decades been getting
away with murder, would you want to spend the time to figure out which
in-house programmer was being an idiot and assuming he could just step
all over the filesystem? Programmers are just plain sloppy. They have
no incentive to make security a priority. For all the PR about M$'s new
"we care about security" schtick, not a whole heck of a lot is going to
change.


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