Recently I work on WPF-XBAP application that will run from intranet website: 

This application must have unrestricted access to client's OS resources (that is unusual for XBAP projects):

I publish it on local website by using "Click-Once" deployment mechanism:
User can launch the application from deployment page (also can run application setup):
I get security error ("User has refused to grant required permissions to the application"):

Read more: Maxim