Many computers have experienced endless reboots after installing Windows XP’s SP3 according to posts at Microsoft’s support forum.
“I just installed Windows XP SP3 and after completing the processes and when the system reboots, the system cannot proceed to load the Windows. It just displays the flash screen of Windows then after it reboots again,” said a user named “Olin” in one of the posts.
The users reported that they cannot go into Windows Safe Mode or revert to a previously saved System Restore point.
The IDG.no article notes that Microsoft was not available for comment early Friday.
Source: IDG.no

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I downloaded SP3 last night and everything works great. Just don’t believe the estimated time, double it.
I used start/ help and support too download SP3
The issue is due to the power management drivers under XP and affects brand name PCs using AMD processors because of the OEMs preloaded OS using an intel driver.
This is all the info release so far. So im assuming retail versions or versions other than an image should be fine.
I just re installed XP onto a Dell Inspiron 1100 Laptop and Installed all of the Updates all the way to SP3 and it seems to be just fine , I think there are some cry babies out there like we have with vista the media needs to start ignoring the whiners!
The old saying goes if you cant stand the heat get out of the kitchen!
I am soo sick of hearing boo hoo my computer can not handle SP3 for Xp or It cant run vista good enough boo booo hoo get a life people!
I have install SP3 Final on more than 70 machines sense its release and I have not seen this problem at all. Sounds to me like the folks having the trouble have not properly installed SP3 to start with.
PJ why install ALL of the updates “all the way to SP3″ when SP3 includes all of the preceding updates? Not an efficient use of time and will likely cause problems eventually.
I haven’t seen this problem yet. Hopefully I won’t. I’ve installed it about 40 times.
Considering that SP3 has already been installed on several million machines without a problem, this issue is not as big a deal as folks are making out. In reality it has only actually occurred on a couple of hundred machines sense the final release of SP3.
The issue only on shows up on machines that have had XP installed using improperly configured Install Disk images at the manufacturer, or on machines where SP3 was installed was installed over a one of the previous SP3 release candidates.
Let’s act like professionals and stop feeding the rumor mills created by irresponsible unknowing bloggers on this subject.