A 17 year old vulnerability in Windows was found just this January. It allow underprivileged users to attain system-level privileges (the highest is a windows box) via a 16-bit application emulated by VDM. Demo available here.
FIX:
Run regedit, then browse to this key:
[HKEY_LOCAL_MACHINE\SOFTWARE\Policies\Microsoft\Windows\AppCompat]
Add the DWORD:
"VDMDisallowed"
Set that to 00000001.
FIX:
Run regedit, then browse to this key:
[HKEY_LOCAL_MACHINE\SOFTWARE\Policies\Microsoft\Windows\AppCompat]
Add the DWORD:
"VDMDisallowed"
Set that to 00000001.

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