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I have SP3 installed on my machine and I haven't noticed any problems. I haven't noticed any speed improvements though, but I do have what would be called an ancient laptop.
The gotchas with SP3 that I am aware of is that if you are installing MS SQL Server 2005, then you will have some problems, which I am assuming most people here won't be.
I will never purchase another PC again simply because of too many issues with Microsoft products. This is the first time in my life that I actually downgraded an OS. I used Vista for several months and could not deal with all the issues so I went back to XP. SInce then I went out and got a Mac and could not be happier. So long Microsoft!
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