Service Pack 3 does not change the way that XP executes programs but, it does fix and updates security, etc. There is nothing that you will really notice.
service pack 3 - http://www.microsoft.com/windows/products/windowsxp/sp3/default.mspx
.Net Framework 2.0 - http://www.microsoft.com/downloads/details.aspx?familyid=0856eacb-4362-4b0d-8edd-aab15c5e04f5&displaylang=en
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