Jouni Tulkki wrote (in a message from Sunday 2)
 > According the following paper, there is a remote exploit possible when
 > using xterm, if I understood it right. Is this true?
 > 
 > Here is the location of the paper:
 > http://www.digitaldefense.net/labs/papers/Termulation.txt
 > 

It's not false, but I'm not sure if it's possible in the real world.
The attacker needs a way to have an user cat the file containing the
malicious sequences directly to xterm. Most applications (mail,
more/less, etc) will filter out these sequences.  Moreover as
mentionned in the paper, no return can be embedded in xterm's
title. So the malicious file needs a way (social attack) to get the
user to validate the command.

Anyways, the new resource AllowWindowsOps in xterm #174, as shipped
with XFree86 4.3.0 allows to disable all this potentially dangerous
escape sequences if they're a concern for you. 

This xterm version does also include a fix for the DEC UDK issue
described in the paper you cite.

                                        Matthieu
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