Basically, a user would have to follow instructions on a web site and, in essence, infect their own PC.  I guess this is not a very big security risk but it's another mark on the release of SP2.  Note that this expolit also works on a fully patched WinXP SP1 system.

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A newly discovered vulnerability in Windows XP Service Pack 2 that could allow a malicious Web site to deposit an attack program on a user's system.
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The attack utilizes Internet Explorer's drag-and-drop features and the Windows "shell folders" to copy an executable from a malicious Web site to a user's startup folder, from which it would execute the next time the user logged on. The researcher who reported the problem to security mailing lists provided proof-of-concept code that leaves a file named "malware.exe" in the user's startup folder.

http://www.eweek.com/article2/0,1759,1637609,00.asp
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