Privacy Tab Options in Internet Explorer

[SpearMan]

In Internet Explorer, you have the options to select 6 privacy tabs.
The vertical slider here may be used to choose from 6 predefined privacy settings. Each of the options available will display the features of each setting, which are fairly self-explanatory, so move the slider Up/Down to view each features of each option.

[FlashX]

IMPORT - This button allows you to install custom privacy settings from a local or network stored file.

DEFAULT - This button will restore your Privacy setting to the default level of Medium.

EDIT - If you wish to ignore the Cookie preferences you have selected for specific sites, select the Edit button. Simply type the sites URL into the Address of Web site field & select Block to refuse saving any Cookies from that site, or selecting Allow to not decline saving of Cookies from that site.

REMOVE - Use the Remove button should you wish such sites to use the normal Cookie management features.
Note – This setting will also override any privacy policy available for the listed Domain(s). If you have got time on your hands a good idea would be to add Block sites whose Cookies Ad-aware/Spybot detect, as this will mostly affect ad servers, this should have little effect on functionality.

ADVANCED - Select the Advanced button should you wish to customize the Cookie preferences yourself; Override automatic cookie handling. Ticking this setting will remove the slider bar in the Privacy tab, instead of using that for setting your Cookie preferences they will determined here by you.

BLOCK - If you are on a shared PC however you may want to set this to Block for similar reasons, you don't want others to be able to access certain Websites as you.

[ChrisUlrich]

A new Privacy tab has been added to Internet Options to configure cookie settings for the Internet zone. By default, Internet Explorer 6 sets your privacy preferences to Medium for the Internet zone and displays a Privacy dialog box the first time a cookie is restricted at this privacy level. The Privacy dialog box explains that a privacy icon is displayed in the status bar each time a cookie is restricted based on your privacy settings and that you can double-click the privacy icon to see a privacy report.

NOTE: All cookies are automatically accepted in the Local intranet and Trusted zones, and blocked in the Restricted zone.

[Itronix]

Medium (Default) Privacy Setting

The Medium privacy setting blocks third-party cookies that do not have a compact policy (a condensed computer-readable privacy statement) or third-party cookies that have a compact policy that specifies that personally identifiable information is used without your implicit consent. First-party cookies that have a compact policy that specifies that personally identifiable information is used without implicit consent are "downgraded" (deleted when you close Internet Explorer). First-party cookies that do not have a compact policy are "leashed" (restricted so that they can only be read in the first-party context). Cookies that had been stored on your computer before you installed Internet Explorer 6 are also leashed.

NOTE: By default, the Per Site Privacy Actions dialog box is not populated, so the Medium setting is not overridden for any individual Web sites. If you click Edit on the Privacy tab of Internet Options and you add managed Web sites to the list with either an Always Block or Always Allow setting, these preferences can override the Medium setting on the slider.