The Microsoft Windows XP operating system has almost 10 Million lines of programming code. So, no matter how much testing Microsoft does, they will not be able to find every conceivable thing that can go wrong. The operating system has a built in reporting program that tells Microsoft when a user experiences problems. I highly recommend you click on Send Report, when the system prompts you. Microsoft uses these reports to decide which problems to fix in the next Service Pack release.
Even though the windows operating system can be problematic at times, it is still the easiest operating system for non-technical people to use. It is always a good idea to install service packs as soon as Microsoft makes them available. I personally installed Windows XP SP2 on my desktop without encountering any problems. However that is not always to case. In fact, for many users installing XP SP2 gives them serious headaches.
Preparation
Any kind of upgrading involves doing some prep work on your machine if you want to avoid problems. I do not recommend you just download and install SP2. That is the easiest way to get headaches. The time spent preparing your computer is well worth the effort. Believe me preparing takes much less time than repairing.
Pest Removal
By pests, I am talking about viruses, spyware, temporary files, browser cache, etc. Follow these steps:
1. Do a virus scan and correct all the problems found.
2. Next you should scan for spyware. Since spyware tends to attach itself to systems files and can also invade the registry, installing XP SP2 can be a disaster if a spyware program had altered your system. When this happens, Windows usually loses network and internet connectivity. (note: Microsoft had a free downloadable utility called winsockxpfix.exe that should fix the problem if you forget to do this step. However it is always better to prevent problems.)
3. Use a good registry cleaner to eliminate any existing problems
4. Delete all temporary and internet cache files.
Update Drivers
Update your hardware drivers to the latest versions available from either Microsoft or your equipment manufacturer. Use the device manager to check what hardware is installed on your computer. Open the Control Panel, click on the System icon, select the Hardware tab and click on the Device Manager button. The Device Manager, shown below, displays a list of all of the hardware installed on the system.

You can right click on any device as shown below. If you select update driver, the Hardware Update Wizard dialogue box will appear and walk you through the process of updating the driver.

If you select properties, the dialogue box below will appear. This dialogue box provides more control options.

Not many of your existing hardware drivers will cause problems, but it is always better to be safe than sorry. However, Service Pack 2 is designed to prevent older drivers from loading if they are known to cause problems. Also, you usually will get better performance from your hardware by installing the latest device drivers.
Backup The System
After reading several user forums discussing windows XP service pack 2, the major problem most people seem to have is that the service pack impacts system performance and / or system stability.
Some of the users got the Blue Screen of Death every time the booted the system. For others, the system runs so slowly that it becomes unusable and crashes.
So based on the problems encountered by others, I recommend that after you clean your system and update your drivers, you do a full system backup immediately prior to installing the service pack. Use NTBackup found at Start->All Programs-> Accessories -> System Tools -> Backup on XP Professional and install the NTBackup.msi program file found in the Valueadd\msft\ntbackup folder on the install CD for the XP home edition.
Other Service Pack Problems
Windows Firewall
The Windows XP firewall is enabled by default after installing SP2. Since many applications use arbitrary UDP and TCP ports to send and receive data, many applications can no longer work. The solution is to open all the ports in the firewall. You can selectively open ports if you know which ones your application uses.
Pop Up Blocker
The pop up blocker can cause many websites that use pop up windows for legitimate reasons to stop working. For example many sites use a pop up window when you download something. The solution is to disable the popup blocker.
Internet Explorer Security
By default, Internet Explorer now restricts the use of ActiveX controls on Web pages. The rationale behind this change is because ActiveX controls are commonly used to install spyware onto your machine. However, many web sites use of ActiveX controls for legitimate reasons. If you run into this problem, you can configure your browser to allow Active X.
Conclusion
Proper preparation should eliminate most if not all of the common problems experienced when installing windows XP service pack 2 on your system. In my opinion, the benefits of the XP SP2 far outweigh the risks.
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