Microsoft does NOT release XP SP3 through Windows Update today
ZDNet's Mary Jo Foley reports that Microsoft discovered a compatibility problem that the company wants to solve before pushing out the update to all users. The problem is with Microsoft Dynamics Retail Management System, and affects Windows XP SP3 and Windows Vista SP1. And we can't for the life of us figure out why Microsoft would delay pushing out SP3 to all of its retail customers for a compatibility issue that will only affect customers who use a niche business oriented application from Microsoft.
If you're tired of waiting, you could always just download Windows XP SP3 the old fashioned way, by finding a link someone dug up and posted on a web site. If it makes you feel any better, the download link points to a Microsoft server.