http://www.pcworld.com/article/211765/
microsoft_downplays_nightmare_windows_kernel_flaw.html?&tk=hp_fv
The bug is in the "win32k.sys" file, a part of the kernel, and exists in all versions of Windows, including XP, Vista, Server 2003, Windows 7.
"This exploit allows malware that has already been dropped on the system to bypass [UAC] and get the full control of the system,
"It's an opportunity that malware writers surely won't miss."
UAC's effectiveness has been called into question before. Last year, Microsoft modified Windows 7's UAC after a pair of bloggers reported that it could be easily disabled by attackers.
http://www.h-online.com/security/news/item/Another-zero-day-vulnerability-in-the-Windows-kernel-1142264.html
This can, for example, be used to insert a rootkit deep in the operating system. According to Prevx, the vulnerability affects both 32 and 64-bit version of Windows XP, Vista and Windows 7