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This is a loaded question to be sure, but the simple answer is this: SP2 will work fine as long as all the programs you have installed on your PC follow Microsoft's prescribed security rules. Of course there's no way of knowing for sure if you'll be safe, but Microsoft has put together a list of programs that are known to have problems after SP2 is installed. This list can be found at http://support.microsoft.com/default.aspx?kbid=884130&product=windowsxpsp2 I have installed SP2 on over a dozen computers with no problem. I have heard through the grapevine that it is best to install SP2 right after a fresh Windows XP install. So if you are due for a complete re-install, that might be the perfect time to do the SP2 upgrade - before you install your applications and games.
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