Deploying and installing managed code smart tags securely in Microsoft Office XP currently requires the assembly be hosted in an unmanaged smart tag proxy component called a "shim". This smart tag shim solution template, properly configured, allows you to successfully deploy your managed smart tags under the highest Office XP security setting. For more information on configuring this shim, see the MSDN article "Using the Smart Tag Shim Solution to Deploy Managed Smart Tags in Office XP".
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