Here's a concise and recent document about the problem; it's relatively
well written:
<http://www.icann.org/announcements/announcement-23feb05.htm>
Excerpt:
"Homograph domain name spoofing works by exploiting the visual
resemblance, or near resemblance of certain characters and symbols."

The thought crossed my mind that font designers might want to consider, in
the long run, designs that would not be easily prone to spoofing. I think
it's not hard to say why that's a bad idea, in some respects.

Regards,

--
Nicholas Bodley /*|*\ Waltham, Mass. (Not "MA")
The curious hermit -- autodidact and polymath
If you're determined to be afraid, choose wisely
what to be afraid of.