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Windows XP SP3 reset machine, lost local config, why?

When I installed Microsoft's Windows XP SP3 update my PC restarted without lots of my local configuration.

Symptoms:
email account lost (use Thunderbird)
Desktop and Shortcuts lost

I rolled back using a Restore Point I had made and thankfully this worked.

Should I have run the SP3 upgrade differently some how?
Peter, May 2008
NOPE You did it ok It's Microsoft that is A.F.U. You may have to "tinker" a little with the SP3 install to get it right. also go to the MFR's website of Your computer to see if there are any "issues" with the SP3 You can also install one component of the sp at a time to see which one is messing with the system but this is a painful and laborious process THANKS MICROSOFT! Hope this helps.

Clark, May 2008