I have Windows XP service pack 2 installed and luckily haven’t come across this problem. There’s been plenty of other issues though …like it won’t let me download certain programs due to Active X controls in their installers. And plenty of other serious irritants.
I kinda feel sorry for Microsoft over this one, as only last month I met a few people who had a role in its development while I was in Seattle visiting my brother (who also works for Microsoft). They were so excited about it. Ho hum.