Microsoft developers have said that the second beta release of Internet Explorer 7 will provide support for international domain names (IDN). IE will convert the Unicode domain names to Punycode before the name is resolved or send to the proxy.

While IDN compatibility expands the Internet's accessibility for non-English speakers, it also increases the chance of spoofing attacks (IDN homograph attack). That blog entry also details a number of security measures it will put into place to prevent phishing and spoofing attacks.

Users will be able to disable the displaying of IDN domains in Unicode.