According to ENT News, Microsoft has confirmed that they will release another service pack for their XP operating system.
It will be released next year but there are only a few details on what the service pack will be about.
“We’re currently planning to deliver SP3 for Windows XP in the first half of CY2008. This date is preliminary, and we don’t have any more details to share at this time,” said a Microsoft spokesperson in an email.
Microsoft originally planned to release another service pack after the second release but there were rumors that they will not release another one.
Source: ENT News

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Strange, I would have thought they would stop providing service packs in order to boost sales of Vista?
I agree. Its probably more of logistics thing where its a pain in the ass to download lots of different small updates all the time and to support them.
It also allows them to stop support for anything lower than SP3 like they have done with SP2.