SP2 is coming out very soon, 16th August I’ve heard. Though it’s coming with issues.

The whole browsing experience is going to change in the way it handles plugins, downloaded files etc. Macromedia have put up a page that details changes and provides links to the M$ pages of interest.

Interestingly though IBM are blocking the update and M$ themselves have released this tool which lets you “Temporarily Disabling Delivery of Windows XP Service Pack 2 Through Windows Update and Automatic Updates”.

Edit: BBC News article on SP2 “issues”.