Threat scenarios from local buffer overflow

["SmartKID" <flawpee () rediffmail com>]

Hi,

Are there any possible threat scenarios from a buffer overflow in an
executable stored locally. For instance, say something like notepad.exe has
a buffer overflow, which might be exploited by issuing

notepad aaaaaa(3000 times).txt

Would this allow any sort of system compromise or privilege execution?

Thanks
SmartKIDJoe