I don't know if it will be fixed in SP2, but it seems that MS was made aware of the issue and re-did the patch.
It's rooted in Windows XP Hotfix Q811493. You can see it in Add/Remove Programs in Control Panel. Also, it's been reported that this problem affects between 40% and 60% of XP users who installed SP1.
But once bitten, twice shy, ya know? I won't install SP2 until I get the full green light that it won't muck up my system with tons of useless BS, or restart all those damned useless services I went to so much trouble to disable.
For now, I'm running fast and lean with the original XP install, with a few performance mods to the registry, of course. ;-)
Given the nature of Microsoft products... let's just say I think the hotfix should stay in place.
I did some research, and Microsoft figured out the problem, but only distributed a corrective program internally. It was never made publically available. Hopefully it'll be in SP2...