I have a windows application which references some components and 2
webservices. When this application is being used over the intranet, the
system asks for Security adjustments. I thought this was only required for
situations where we download an assembly - why is it required for accessing
a 'winexe' over the LAN ?

By default, .NET exes can not run in Intranet zones with Full Trust, only in
hard drive. Read something about code security in .NET and
the usage of the Microsoft .NET Framework Configuration and Microsoft .NET
Framework Wizards (Control Panel, Administrative Tools) to change the
default security policy (or the caspol.exe command-line equivalent).

If you want a quick and blind solution, go to Control Panel, Administrative
Tools, Microsoft .NET Framework Configuration, open the MyComputer\Runtime
Security Policy\Machine\Code Groups\All_Code\LocalIntranet_Zone, right-click
New... and create a zone, give a name,  select
URL type for the code group and type as URL
file://MyServer/MyFolder1/MyAddDir/*

Show quoteHide quote

button validation preventing click
Re: Embedding UserControl in Internet Explorer
Re: IE Hosted UserControls blocked by 3rd Party Tools?
Testing an Assembly to see if it implements a give interface
Controls question (System.ComponentModel.Design)