XMLHTTP control in Microsoft XML Core Services 2.6 and later does not properly handle IE Security Zone settings, which allows remote attackers to read arbitrary files by specifying a local file as an XML Data Source.
http://archives.neohapsis.com/archives/bugtraq/2001-12/0152.html
http://marc.info/?l=bugtraq&m=101366383408821&w=2
https://docs.microsoft.com/en-us/security-updates/securitybulletins/2002/ms02-008