While the load of SP2 to my machine was uneventful, something strange happened a few days ago and I can't be certain but I feel that it may be related. I still use ad-aware and ad-watch, after picking up an update to these products, my machine went goofey on me. It lost the ties between all .exe and .lnk extensions to their programs. After a few days of playing around and web searching, I found this site
http://www.dougknox.com/xp/file_assoc.htm. It has many registry fixes for problems with specific file extensions. Maybe this will help.
I run Norton anti-virus, ZLID firewall and the aforementions ad-aware as well as Spybot. I wonder if SP2 was really necessary in my case ? BTW, I turned off the windows firewall and other stuff as I feel that my machine is fairly well protected (fingers crossed).