It sounds pretty unbelievable to me. To make good on some of the claims made in the article they'd have to bypass not only Vista's security, but also the virtual memory system of the CPU. Unless their exploit can load code into
the kernel that seems unlikely.
Whatever the case, I'll be interested to see what they've come up with. But until I've seen them in action I have my reservations about things being as bad as the article claims.
They put up a paper and some exploit code and from what I understand from
the researchers, this is a very simple exploit to throw out to the public and very simple to execute an attack on ANYONE running Windows Vista and possibly XP SP2 and Server 2003. Also, Linux and Mac users as always are safe. This just shows bad development
and lack of competence on the Windows development team.
Enjoy Windows while it lasts, because its about too go away.