It's like the various autorun exploits, but better because you don't need an additional privilege escalation vulnerability and you get to execute your attack even if autorun is turned off completely.
Being able to compromise a system via a mundane and apparently benign action is never low-severity.
If you have physical access and a local user, it's much easier to use any Linux boot CD and one of the myriad "password recovery" systems.
I used Petter N Hagen's http://pogostick.net/~pnh/ntpasswd/
back in my tech support days (several years ago).
The current tech support guy swears by Hiren's BootCD
Many newer USB sticks even have preloaded binaries for the supporting software (SanDisk volume utilities come to mind) - this would be a perfectly innocuous location to load this sort of attack.
"andrewaylett:
But it's not an autorun vulnerability, that wouldn't be newsworthy -- the problem is that simply mounting the filesystem exploits bugs in the filesystem driver."
Nowerdays there are viruses that spread by USB memory stick - and lie dormant on the computer infecting every USB memory stick that gets plugged in. Needless to say, lecture hall computers quickly became infected - even without any malicious intent on the part of the physically present user.
http://en.wikipedia.org/wiki/Hiren%27s_BootCD
Wikipedia links to this download location:
http://www.hirensbootcd.org/download/
My coworker says he found it on Argentinean site Taringa! ( http://www.taringa.net ), which has had it's brushes with copyright infringement in the past as well.
Is kernel memory mapped into user processes on Windows?