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These postings are provided "AS IS" with no warranties, and confers no rights. You assume all risk for your use.
Microsoft just released a new Anti-XSS tool that works with .NET Framework 1.0, 1.1 and 2.0. Anytime you echo user input back to the Web Page you are susceptible either persistent or non-persistent cross site scripting attacks.
So what was wrong with using System.Web.HttpUtility.HtmlEncode? Check out my blog entry for more details: