Microsoft has decided to delay the last service pack for Windows XP. According the the article at Computerworld, the delay is caused by a compatibility issue between the POS (Point-of-Sale) application for some retailers and the operating system. The application is called Dynamics Retail Management System (RMS). The company has setup filters so that Windows Update will not offer users the XP SP3 update.
The incompatibilities were only discovered just several days ago. Microsoft recommends users to visit the TechNet forums if they want to learn more about SP3.
There is no word when it will be released.
Source: COMPUTERWORLD

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Lee
tell us what POS really stands for!
The delay is a rumor that got out of hand. The problem with SP3 only affects those systems running a very specific Retail Point of Sale software product. While this is enough to prevent it from being added to the auto update, the SP3 standalone IS available for manual download is perfectly safe for use on all other systems without issue. You can download it directly from Microsoft here…
http://download.windowsupdate.com/msdownload/update/software/svpk/2008/04/windowsxp-kb936929-sp3-x86-enu_c81472f7eeea2eca421e116cd4c03e2300ebfde4.exe