I am having a similar issue with a web app that uses MSXML and data islands 
on WINXP machines.
The first use of the app is fine....after that nothing seems to work....like 
the app is hanging.
I've found a work around, which is to go to IE options, browsing history, 
and checking the "Check for new pages every time" check box.  Then the app 
works again.
Has something changed in the way refreshed XML data is looked for with this 
update?  I think it would be frustrating for users to always make sure this 
option is checked in their browsers.

"WenYuan Wang [MSFT]" wrote:

> Hello Tom,
> 
> I'm not sure what root cause of your issue is. But MSXML team confirm that 
> after installing 936181 (MS07-042) on Vista, leaked DomDocument objects 
> will cause AV. This issue only occurs on Vista. On Win XP machine, MSXML 
> works fine. Just as what Jason said, removing the patch resolves the 
> problem.
> 
> If you face the same issue, would you please send an email to me? My alias 
> is v-wywang@m...
> I will reply you with KB ID. You can call CSS to ask for the hotfix (if it 
> has been released now).
> 
> Otherwise, we suggest you may contact CSS directly.
> If the problem is confirmed to be a product bug, the case charge will be 
> free.
> You can check http://support.microsoft.com for regional support phone 
> numbers.
> 
> Hope this helps.
> Best regards,
> 
> Wen Yuan
> Microsoft Online Community Support 
> ==================================================
> This posting is provided "AS IS" with no warranties, and confers no rights.
> 
>