Just a note on on Xp SP2. I have one machine still on it--an old Sony Vaio Laptop that I use just for audio. It has a port replicator with normal RCA audio jacks and I have it hooked up to my stereo system for recording, Internet Radio and MP3 playback. I tried updating to SP3 and got audio glitches playing .mp3 files. It ended up being the fault of Internet Explorer 8, not SP3, but I never bothered reinstalling it. I'm still getting security updates for SP2 via automatic update in 2012. I update its virus definitions about once a year. I use the firewall/antivirus that Sony provided for it. No security issues ever. I do use it in user mode and only go into administrator mode to install software or updates which doesn't happen very often. I rarely even open a web browers on this laptop and the only internet app I use with regularly with it is Radiosure.
On the other hand the laptop I use for business, is SP3 with all updates and security fixes. I still use Xp because I have an industrial strengh printer/scanner setup that I need for my work and neither HP or Microsoft provide Windows 7 drivers for it. I really hate the upgrade for upgrade's sake culture. There are sensible upgrades and there are senseless ones based on a lot of hype and marketing. If you have a system that works for you that you've invested some money in, there is no point in upgrading it until it doesn't do the job it needs to do. This is why business users have stayed with Xp so long. If I upgraded this laptop to Windows 7, I would lose speed, hard disk space and access to periphials that are worth as much as the laptop. No point in it. I will use Windows 7 when I buy a machine that comes with it and I will probably still keep scanning and printing with this machine.
I've been using Winuae since around the year 2000. It is one of the best emulators ever and it is constantly improved.