Lack of environment sanity checks. Insufficient bounds checking.
Local users can run arbitrary commands as root.
With this command it is possible for any user on the system to change the openwin configuration. In this particular program, system is used badly and two things are going on. I've used the easiest one in my exploit below. Other problems noted but not investigated were multiple command line options lacking proper bounds checking and predictable temp file creation. It would be a good idea for the vendor to perform a complete audit on this product.