Windows XP Service Pack 2 has introduced changes to the Local Machine Zone.

An information bar will be displayed when viewing a page containing JavaScript within the Local Machine Zone. This affects pages with Navigation Bars and Photo Albums inserted, because script elements are inserted in to your pages in both cases.

The changes only affect the Local Machine Zone and not the Internet Zone. The information bar will not be displayed when viewing a page with a NavBar or photo album served from your web server.

The following links provide additional information regarding the alterations to the Local Machine Zone.
http://msdn.microsoft.com/security/productinfo/XPSP2/securebrowsing/locallockdown.aspx
http://msdn.microsoft.com/security/productinfo/XPSP2/securebrowsing/lockdown_devimp.aspx

Internet Explorer does allow you to disable the display of the information bar when viewing pages within the Local Machine Zone. We recommend you read the information at the urls provided above. If you wish to disable the security then you can do so by following the instructions below

Allowing scripts to be executed within web pages viewed in the Local Zone

• Open Internet Explorer and select Tools followed by Internet Options
• Click on the Advanced Tab
• Scroll down to the security section
• Enable 'Allow active content from CDs to run on My Computer
• Enable 'Allow active content to run in files on My Computer
• Select the Apply Button and Click on Ok