Keep in mind this info does come from MS so don't trust it any more then you would trust the US goverment.
http://www.microsoft.com/windowsxp/sp2/topten.mspx
Top 10 Reasons to Install Windows XP Service Pack 2 (SP2)
1. Help protect your PC from harmful attachments.
By alerting you to potentially unsafe attachments, Windows XP Service Pack 2 (SP2) helps guard your computer from viruses that can spread through Internet Explorer, Outlook Express, and Windows Messenger.
Improve your privacy when you’re on the Web.
2. Improve your privacy when you’re on the Web.
SP2 helps protect your private information by applying the security settings that guard your PC to the files and content downloaded using Internet Explorer.
Avoid potentially unsafe downloads.
3. Avoid potentially unsafe downloads.
Internet Explorer download monitoring and the Internet Explorer Information Bar warn you about potentially harmful downloads and give you the option to block files that could be malicious.
4. Reduce annoying pop-ups.
Internet Explorer Pop-Up Blocker makes browsing the Internet more enjoyable by helping you reduce the unwanted ads and content that pop up when you’re browsing the Web.
5.Get firewall protection from startup to shutdown.
The powerful, built-in Windows Firewall is now turned on by default. This helps protect Windows XP against viruses and worms that can spread over the Internet.
Take control of your security settings.
6.Take control of your security settings.
The new Windows Security Center allows you to easily view your security status and manage key security settings in one convenient place.
Get the latest updates easily.
7.Get the latest updates easily.
Enhancements to Windows XP’s Automatic Updates feature make it even easier to access Windows updates. Plus, new technology has been added to help dial-up customers download updates more efficiently.
Help protect your e-mail address.
8.Help protect your e-mail address.
Improvements to Outlook Express help reduce unwanted e-mail by limiting the possibility of your e-mail address being validated by potential spammers.
Take action against crashes caused by browser add-ons.
9.Take action against crashes caused by browser add-ons.
The new Add-On Manager in Internet Explorer lets you easily view and control add-ons to reduce the potential for crashes and enjoy a more trouble-free browsing experience.
10.Go wireless without the hassle.
SP2 improves wireless support and simplifies the process of discovering and connecting to wireless networks in your home or on the road.
Archived topic from Iceteks, old topic ID:2616, old post ID:21554