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There is pretty much no reason to install SP3. It is basically a roll up of all the already shipped updates. The only new feature is some DEP stuff and some support for a Server 2008 feature.
The real advantage to SP3 is if you are doing new installs you can slipstream your install CD so after the install you don't need to install hundreds of updates which requires about 4 or 5 reboots (BTDT).
Also, any problems you have heard about are a very small minority. You haven't heard from the millions that have installed it with zero issues.
BOb
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