I had two clients this week with the same problem, installation of XP3 just takes forever (freezes), and on the next reboot it restores the previous files that were backed up.
Advice I gave: Save everyone time and money and just don't install SP3.
I searched on the web, it would seem that there are numerous people with this problem, but I was unable to find any clear-cut answer.
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UNIX was not designed to stop you from doing stupid things, because that would also stop you from doing clever things.
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