From Zone-H.org:
08/21/2004

Updated: Aug 19 2004

Original Entry Date: Aug 19 2004

Impact: Modification of system information

Exploit Included: Yes

Version(s): Windows XP SP2

Description: A vulnerability was reported in Windows XP SP2 in the display of files within zip archives. Windows Explorer and Microsoft Internet Explorer may display a file with the wrong icon.

http-equiv reported that a remote user can create a zip archive containing a malicious file so that when the archived is viewed using Windows XP SP2's native Explorer or Internet Explorer archive viewing functionality, the file will show an arbitrary icon.

A demonstration exploit that shows the Windows Notepad icon on a file named 'notepad.exe' is provided:

http://www.malware.com/malware.sp2.zip

Michael Young of Miles Technologies subsequently reported that the regedit.exe, winhelp.exe, and explorer.exe filenames will also display their corresponding icon.

Impact: A remote user can cause the system to display the wrong file icon to the target local user.

Solution: No solution was available at the time of this entry.

Vendor URL: www.microsoft.com/technet/security/

Cause: State error

Underlying OS: Windows (XP)

Reported By: "http-equiv@excite.com" <1@malware.com>
And of course, here's some added information.