The former.

Dropbox and a number of similar sites are blocked, as are most webmail clients (including popular hosted clients). Company e-mail is scanned, although there are ways to avoid this, but I wouldn't imagine many would know of these, or have a need to even know it was done. For the majority of users, non-encrypted USB sticks can't be read, so bringing it in from home isn't an option (I am one of very few who can both read and write to unencrypted media, because I have a requirement to do so). Possibly a CD/DVD would work, as I think everyone can read those.

The more significant hurdle is that only developpers can run non-installed executables, and then only from certain locations.

Same restrictions in place here, although my job requires different permissions and hardware. Strangely Dropbox is not restricted but webmail and social networking sites are blocked.

That said I was surprised the executable downloaded, let alone ran and worked on several machines across two sites and from within a citrix roaming profile, it's a massive security flaw, and/or something to do with the permissions on my profile, I should probably report it.

On one hand: WTF? On the other hand: am I surprised? No.

Our Government has demonstrated cluelessness before. Something will have to happen before they did anything. A bit like waiting for a kid to be killed on a very busy road before putting in a crossing.

"Duh, duh, duh, but we already have a compooter, why do we need a new one?"

So security isn't a requirement for the MoD then?

Fail.