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Yes, it's *obvious* this is a good thing in terms of hacker protection. However, there are certainly issues with PHP code that will not work, or works differently, with allow_url_fopen truned off. And I'm certainly not golden here.
Here's one thing I've found already, and I'm sure more will follow as I test every single piece of every single page, both user and admin functionality.
The PHP function getimagesize() will not accept a URL, even one that is within my own site. This affects (at least my version of) XoopsPartners 1.1.
Perhaps all the various calls to fopen() in the system are benign, but I will have to check them also.