There is a memory corruption vulnerability with GIF file processing in Microsoft GDI+ that can be used to crash a vulnerable application and potentially execute arbitrary code.
The vulnerability is caused due to improper handling of graphic control extension when processing malformed GIF files. The vulnerability can be triggered if a large number of extension markers (0x21) followed by unknown labels is found when processing a GIF file.
Impact:
This vulnerability can be used to corrupt memory of any application utilizing GDI+ for GIF file decoding if it is used to open a malformed GIF file. This could lead to code execution with the privileges of the user running the vulnerable application.
Solution:
Microsoft has released a solution available at MS08-052.