I recently had a Windows XP machine (HP Pavilion 783C), of which I performed a System Recovery. After which I noticed my SP1 update failed to connect to Microsoft's update server. I went to Microsoft and downloaded the update again and the same thing happened. My ultimate goal was to install SP3, but SP3 requires SP1 to be installed. I was left with no other option but to do an in-place install of Windows XP(OEM) SP3. This was probably the quickest option with the exception that I had to convert a Retail disk to an OEM disk before I could get the machine activated. Has anyone else had issues installing Windows XP SP1 update? Or possibly a better solution than a re-install which will require re-activating. Maybe what I'm asking for is a Windows XP SP1 update that doesn't phone home and require a connection to Microsoft's servers that they obviously shut down.