I don't belive it stops installations, although I'm not sure what freddy is. I think the sandbox is ment to enclose viruses such as adware and trojans.
Well, it clearly does a little more. Example:
I start IE 6 virtualized. Browse to a page then try these operations:
(1) Use File/Save As to save a copy of the page I'm browsing.
(2) Put the mouse cursor over a link and select Save Target As from
the right-click menu.
For both operations the save appears to be successful.
If I try to repeat the same operations, when the directory
dialog opens to select where to save, in the list of files
already there I can see the file(s) I just saved. Fine.
Now go to another app such as Total Commander or Windows Explorer
and look for the saved file(s). Not there. Nowhere to be found.
File search can't find them. They were only "virtually" saved,
not actually.