Hi all,
In general I'd say that it's essential that you secure your machines as much as possible, and XP2 is a very good way to acheive this (within a limited scope). However, if it hinders some of your important operations, as in the case of a scanner not working, then you have to decide what you want.
As far as my experience goes, SP2 users do seem to have a few less leaks in the sieve known as MS, but I'm still fixing hijacks in them, as can be seen in the latest set of HJT logs here.
At the end of the day you decide, but if possible install SP2. I'll help you fix any security problems as best I can if you all come unstuck. Got to keep my hand in somehow..
Oh, to Jerricho,
You'll find that rather than SP2 causing problems with Morpheus, it's Morpheus trying to get around the security features and failing.
Further reading for those of you using P2P file sharing.
Kazaa is famous for installing all kinds of spy/malware on people's machines, but that link tells you teh associated problems with other P2P programs, and gives suggestions for clean alternatives. You can even see exactly what they install by clicking the box.
Cheers
Liam