If the INQUIRER is to be believed....
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Microsoft update kills ZoneAlarm
Update 15:30, 09/07/08
Checkpoint is now advising Zone Alarm users of three fix options, which will get
them back up and running until the issue is fully resolved.
It's all here.
PUNTERS who use the ZoneAlarm security package might not want to install MS update KB951748.
According to several news groups, the first thing you will notice after running the update is that your internet connection dies as KB951748 made changes to the networking files that Zonealarm doesn't like. It then decides to block everything just to be safe.
You can get around the problem by setting the Internet Zone Security permission slider from high to medium and that will give you your connection back but that is not really a good idea if you want high security.
Sniffing around the forums we found similar advice although, apparently, the best bet is to reset the ZoneAlarm database.
No word has come from Microsoft or ZoneAlarm yet on the problem which appears to be caused by the update not liking the different file sizes and checksums.
It might be a bad idea to install KB951748 until after either of the companies releases some more concrete information. µ
L'Inq
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My internet was broken and I realized that disabling ZA sorted it; however, having just installed AVG 8 onto XP and slowing my laptop down to a snails pace I decided to give linux a try and installed ubuntu, I surprisingly got my wireless card to work and have not booted into XP since! bad updates equals lost users?

http://download.zonealarm.com/bin/free/pressReleases/2008/pr_6.html - Media alert saying Check Point will provide a solution

http://download.zonealarm.com/bin/free/pressReleases/2008/LossOfInternetAccessIssue.html - Recommendation to install the latest ZoneAlarm.
I'm afraid it's a case of deja vu again ! MS patches and Zonealarm have a habit of interfering with each other going back years.
A quick rollback got my house back online until the autoupdate kicked again and crippled us ready for the next logon - then I remembered the hassle I had 2 years back and turned off ZA : hey presto full service but unguarded :(
Zonelabs forum doesn't have any good news yet (AM 12/07) so I reckon I'll have to trawl around for a new solution.
Folks you can't blame either company here, remember MS are constantly evolving their product (we are the labrats) ... Zonelabs are trying to shift product that is compatible so the onus will be on them to deliver - but as it's a free gratis product how dare we complain?
All anyone has to do to alleviate this issue is download and install the latest version of ZoneAlarm. Here is a link that will tank you where you need to go. http://download.zonealarm.com/bin/free/pressReleases/2008/LossOfInternetAccessIssue.html

Enjoy
William
Absolutely I have experienced this several times so far this week. As a systems integrator and a repair shop owner it makes money for me, but sheesh, I don't like to make money this way.

Again, let's consider that Microsoft doesn't make good software and it's hard to support the idea that they make software that is just good enough. My opinion is that they make terrible software. 

I'd suggest more Linux in everyone's diet.
http://download.zonealarm.com/bin/free/pressReleases/2008/LossOfInternetAccessIssue.html
so I worked out why I couldn't connect to the internet/web. Initially just turned off ZA as a work around - then got a bit nervous so uninstalled the update & switched ZA back on - all fine for a few hours - now guess what can't connect again. Just switched off ZA & its working
I installed the patch on two PCs before I discovered the problem. I chose to uninstall the patch until a proper fix is available. Everything is working normally again. As for being "temporarily unprotected", it's not as though the vulnerability addressed just emerged today. I survived since it was first identified until the patch was released yesterday, so I think I can manage a few days more.
http://forums.zonealarm.org/zonelabs/board/message?board.id=access&message.id=34074
I have Symantec Endpoint Protection on my machine which uses the old Sygate Pro firewall. After the update it took websites around 10 times longer to load if they would work at all. I removed it, rebooted, and everythings fine again.
I'd much rather download a temporary alternative firewall program than leave a giant DNS security hole in my system thank you very much. I don't see how this is MS's fault since it appears to be a Zone Alarm bug.
Thanks Microsoft.

Can't you test your software before releasing it !!!

I have the KB951748 update installed on 2 of my XP Pro SP3 and 1 XP Home SP3 systems with Zone Alarm version 5.5.062.011 with the firewall settings at high and the problem that most people who have version 7.x and so on are having do not affect me. So maybe people who have Zone Alarm 7.x installed should find an older version to install instead of removing the MS update which i'd rather have installed and have some kind of protection than not have it and be unprotected. Just my 2 cents on the matter.
Being a licensed user of Zonealarm Pro, I logged in last night and let them know what problem I had.

I suspect ZA will issue an upgrade, not M$
Well blow me down a friend of mine was calling me today and asking about why his internet wasn't working.

I've been trying to give him advice on what to do he did say he'd just updated his PC from Windows Update. It didn't occur that it could of been a update from Microsoft that shafted the connection. He's removed it and it works ;o) 

thanks Inq
Since the vulnerability fixed is a critical flaw allowing people to inject fake results into your DNS I'd advise to use another firewall rather than not update.
What the update does is replace amongst others your tcpip.sys and change how it selects and from what pool it picks random ports for DNS requests, zonealarm should just quickly update their stuff and learn to develop software a bit better.
Incidentally if you patched your TCIP to allow more half-open ports you'll have to re-patch.