No, here k-m 1.02 de-AT did nor fall for it with JS activated. It stopped after typing "C". I also had the same with Firefox with 1.5.0.9 engine.
IE 7 Standalone Install crashed
reproducable. In one case i had to reboot because it tore down explorer too.
Maybe system specific for all browsers? My XP is not on C:/; IE error is about path.