Don't Install Windows XP SP2 Now
Per Microsoft, "programs that may behave differently after you install Windows XP SP2"
Programs that are affected include Photoshop Elements. See the following for the complete list.
http://support.microsoft.com/default.aspx?...ct=windowsxpsp2
The update, Service Pac 2 (SP2) will arrive as a normal XP update. My recommendation is to not install it.
Better yet, do the following to prevent it from being installed while allowing future security patches to be installed.
Click on this Microsoft link to postpone delivery of a software update to your computer.
http://go.microsoft.com/fwlink/?LinkId=33518
Save the file to your hard file and click on the file in Windows Explorer. You will then be asked if you want to accept the End-User License Agreement. After you select 'Yes,' you should see a new window briefly open and close on your computer.