The ActiveX Installer Service consists of a Windows service, a Group Policy administrative template, and a few changes in Internet Explorer. It will be an optional component on the Ultimate, Business, and Enterprise SKUs of Windows Vista and will only be enabled on clients where it’s installed. If a user is running as a standard user and the feature is enabled, Internet Explorer will ask the service to install any ActiveX controls that need to be installed. Before installing the ActiveX control, the Installer service will check to see if the Host URL of the CODEBASE is defined and listed in Group Policy and if it is allowed. If the service policy permits the install of the ActiveX control, then the service will create an instance of the Internet Explorer ActiveX installer object to be used to install the control. If Group Policy did not specify that the ActiveX control was allowed to install, then the default Windows Vista behavior is resumed: a Consent\Credential prompt is required to install an ActiveX control.
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