Microsoft has now officially release the Service Pack 3 update for Windows XP. But should choosing to upgrade will be affected by how you use your computer and whether it is part of a corporate network.

Windows XP SP3 includes all previously released Windows XP updates, including security updates and hotfixes, and select out-of-band releases. For example, the service pack includes functionality previously released as updates, such as the Microsoft® Management Console (MMC) 3.0 and the Microsoft Core XML Services 6.0 (MSXML6).

Should you upgrade?

Microsoft is not adding significant functionality from newer versions of Windows, such as Windows Vista, Windows XP through XP SP3. For instance, Windows XP SP3 does not include Windows Internet Explorer although Windows XP SP3 does include updates to both Internet Explorer 6 and Internet Explorer 7, and will update whichever version is installed on the computer.

One notable exception is that, SP3 does include Network Access Protection (NAP) to help organizations use Windows XP to take advantage of new features in the Windows Server® 2008 operating system.

For a full list of the features and fixes included within SP3 see the full Microsoft white paper.

In general we would recommend the upgrade. A report at Techspot in Nov 2007 on the Beta showed an increase in performance as a result of the upgrade.

How much space is required?

This will depend on whether you have the system restore feature enabled:

Working space 80 MB
Files that remove Windows XP SP3 256 MB
Total hard disk space required 1020 MB

Total hard disk space required without restore 380 MB

460 MB peak usage during installation

Why the delay in rolling out?

The delay in rolling out XP SP3 was caused by Microsoft discovering incompatibilities issues between an application called Microsoft Dynamics RMS and both Windows XP SP3 and Windows Vista Service Pack 1 which resulted in the company holding off on releasing the software. Dynamics RMS is a retail-chain-management software for SMBs.

Microsoft is still recommending that Microsoft Dynamics RMS customers not install Windows XP SP3 or Windows Vista SP1. For more information, those customers should contact Microsoft Customer Support Services, the company said.

A fix to the Dynamics RMS problem is being tested and "will be available as soon as that process is complete," Microsoft said. The company did not provide a time frame for completion of the testing.

In the meantime, it has deployed a filter for the automatic Windows Update to block RMS users from getting it. Microsoft said a permanent fix is currently in beta and will be available later this month.