ZDNet thinks it's a big deal. I'm only partially impressed.

Vista hacked at Black Hat

LAS VEGAS--While Microsoft talked up Windows Vista security at Black Hat, a researcher in another room demonstrated how to hack the operating system.

Joanna Rutkowska, a Polish researcher at Singapore-based Coseinc, showed that it is possible to bypass security measures in Vista that should prevent unsigned code from running.

And in a second part of her talk, Rutkowska explained how it is possible to use virtualization technology to make malicious code undetectable, in the same way a rootkit does. She code-named this malicious software Blue Pill.

"Microsoft is investigating solutions for the final release of Windows Vista to help protect against the attacks demonstrated," a representative for the software maker said. "In addition, we are working with our hardware partners to investigate ways to help prevent the virtualization attack used by the Blue Pill."

He would have gotten sooo many more geek points if he would have done this the day it shipped. Hacking a beta version doesn't really mean that much.