Once Microsoft finally released Windows XP Service Pack 3 to the Automatic Update after a last minute delay you might think the worst is over, but for many it doesn’t look like that’s necessarily the case. As the release has been rolling out to computers around the world there have been a number of reports with problems as you might expect with any major service pack, but one issue seems to be quite a bit more prevalent than the others.

According to ComputerWorld there have been many reports of an “endless reboot” problem that has been flooding forums with no real specific reason or response from Microsoft. One of the theories is that computers running AMD processors with XP are the ones having the problem, but the issue is not exclusive to AMD. Microsoft has said that problem comes from computer makers who used the wrong XP images to load the OS on AMD machines. HP, who was not named specifically by Microsoft, fired back saying that SP3 added a driver that was not previously present which causes the problem.

Our monthly check of new Microsoft updates revealed today the long awaited Windows XP Service Pack 3. We are in the middle of downloading the update right now so we can’t speak to performance, but we wanted to give you a heads up it is now available.

If you’ve been eagerly watching your Windows Update on XP waiting for SP3 to show up your wait is over; it’s not coming, or at least not quite yet. At what seemed like a very last minute decision, Microsoft on Tuesday delayed the launch of Windows XP Service Pack 3 due to a compatibility glitch with Microsoft Dynamics Retail Management System software. The release was scheduled to be available through Windows Update on Tuesday and has already been released to manufacturing and volume customers last week.

“In the last few days, we have uncovered a compatibility issue between Microsoft Dynamics Retail Management System (RMS) and both Windows XP SP3 and Windows Vista Service Pack 1 (SP1),” said the firm.“In order to make sure customers have the best possible experience, we have decided to delay releasing Windows XP Service Pack 3 (SP3) to the web.”

Chris Keroack, release manager for Windows XP Service Pack 3, has announced that the new service pack has been released to manufacturing (RTM) and is working its way to the OEM’s right now. For the rest of us, Microsoft is planning on getting XP SP3 online and available through Windows Update on April 29, along with its associated documentation.

This release is the first of its kind for XP since Microsoft released SP2 back in 2004, and is a welcome site to users of XP anywhere and especially to those that have battled with Windows Vista and lost, or at least came out slightly injured. Included in the update is a cumulative security update along with some performance and stability enhancements. They’ve also included some features to help integrated new Windows Vista OS’s along with existing XP machines on a network.

Microsoft has announced that the plan for the general end of shipping Windows XP has been extended a couple of years, at least for the Windows XP Home edition. The latest plan for the end of most sales of XP was dated on June 30, 2008 but the advent of a new market of ultra low cost PCs (ULCPCs) has made Microsoft change there tune on forcing everyone onto the new Vista system.

Microsoft has just released Windows Vista SP1 which is usually a good milestone for those looking at upgrading to the next version of Windows, and is a point at which Microsoft helps push them along, but in the case of these UPCPCs, the Vista OS is just to big and expensive. The OLPC (supposed $100) XO laptop is one such machine that could still take advantage of the XP OS but would be forced to stick with Linux or look elsewhere if XP were phased out.

Microsoft appears to have given in a little bit in response to concerns and complaints about their new Windows Vista operating system. The company’s original plan was to have the original equipment manufacturers (OEM’s) stop selling the Windows XP operating system with new computers as of January 31, 2008. Custom builders would get another year giving them until January 31, 2009. After that it would be all Vista and no more XP.

Since that original plan was made the sales of PC’s with the new Vista OS haven’t been …