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By default, the Local Internet zone has some rather loose permissions set.
You can tweak the security level to meet your needs, but at a minimum, it is recommended that you disable anything related to Active X.
This is a strong statement, because there aren't many sites that you should trust implicitly.
Security expert Brien Posey's personal philosophy is that "you should only include sites that are under your direct control to the Trusted Sites zone." The Restricted Sites zone if for sites that you do not trust.
If your Web browser security settings are too tight, then your IE users may become frustrated or certain Web sites might not display properly (or at all).
According to Windows security expert Brien Posey, "One of the biggest keys to establishing optimal Internet Explorer settings is to make effective use of Internet Explorer zones." IE allows you to configure each zone (Internet, Local Intranet, Trusted Sites and Restricted sites) individually.
Internet Explorer, and the ways in which you can defend your network from Web-related security hacks.