BlueEagle, suggest that you try for confirmation of this problem at "WOODY'S LOUNGE" where there is a thread running now.
http://www.wopr.com/cgi-bin/w3t/show...=collapsed&sb= 5&o=0&fpart=
It is entitled :"Very Slow Responce (Windows XP Home Edition)"
and it confirms that this particular update does indeed slow the system down considerably.
You may have to register(free) to enter, but well worth the effort for ANY computer woes