I think this is a bug, but it's not listed in the MSKB. What does everyone here think?

I reported this first as a security problem to MS, but they called it a bug. I then reported it as a bug, but I doubt I'll hear back from them.

Description of problem:

Word 2000 does not respect the "Confirm Conversion at Open" option when opening non-Word files with Word 2000 embedded in Internet Explorer 5.5. I've confirmed that this occurs when a web site links to a Rich Text Format (.rtf) or WordPerfect (.doc) file through the http:// protocol; Word will open the file within the browser without asking the user to confirm the conversion to Word.

Description of how I found the problem:

Our company intranet site links to several .rtf files. When I clicked on one of these links, Word opened the file in my browser, but did not ask me to confirm conversion from Rich Text Format to Word, even though I verified that the "Confirm Conversion at Open" option was checked. I then saved the same .rtf file to my desktop and tried to open it from there. The same file on my desktop did trigger the confirm conversion dialog correctly. To further test this, I saved a Word document as a WordPerfect 5.x for Windows document, using Word 2000, and tried to open this WordPerfect document from my desktop and from my intranet. I got the same results in that there was a confirm conversion dialog when opening from my desktop but no dialog when opening from my intranet with the http:// protocol.

My System:
Operating System: Windows NT 4.0 Workstation with Service Pack 6a (4.00.1381)
Word 2000 (9.0.4402 SR-1)
IE 5.5 (5.50.4522.1800)
All relevant hot fixes to my OS, IE 5.5, and Word 2000 have been installed, including the recent "Word 2000 Security Update: Macro Vulnerability".