Prosody before 0.8.1 does not properly detect recursion during entity expansion, which allows remote attackers to cause a denial of service (memory and CPU consumption) via a crafted XML document containing a large number of nested entity references, a similar issue to CVE-2003-1564.
blog.prosody.im/prosody-0-8-1-released/
hg.prosody.im/0.8/rev/5305a665bdd4
hg.prosody.im/0.8/rev/ee6a18f10a8d
prosody.im/doc/release/0.8.1
secunia.com/advisories/44852
www.openwall.com/lists/oss-security/2011/06/14/6
www.openwall.com/lists/oss-security/2011/06/15/5
www.securityfocus.com/bid/48125
exchange.xforce.ibmcloud.com/vulnerabilities/67884