Download Windows XP SP3 RC from Windows Update
Microsoft has released Windows XP Service Pack 3 (SP3) Release Candidate (RC) to around 15,000 testers selected in Microsoft Connect. XP SP3 includes at least 1,073 bug fixes and patches, excluding hotfixes from previous service packs. Of which, 114 patches are security related, while the remainder are updates to improve performance and reliability, bugfixes, improvements to kernel-mode driver modules, and many BSOD fixes.
XP SP3 also adds several new features where most is backported from Vista such as more descriptive Security Options UI in Control Panel, enhanced security for Administrator and Service policy entries, black hole router (which silently discards packets) detection, Microsoft Kernel Mode Cryptographic Module (FIPS.SYS), Network Access Protection Networking (NAP), and change to Windows Product Activation Setup to allow users to complete installation without having to provide and enter product key, as in Windows Server 2003 Service Pack 2, and Windows Vista (though you still need to have a product key as part of Genuine Advantage during subsequent use).
Windows XP Service Pack 3 RC1 is available as an around 350 MB KB 936929 download package from Microsoft Connect named windowsxp-kb936929-sp3-x86-enu.exe (or windowsxp-kb936929-sp3-x86-jpn.exe and windowsxp-kb936929-sp3-x86-deu.exe for Japanese and German). However, you need an Invitation ID to download from Connect website. Those unable to download from Connect or don’t have Invitation ID can download direct via Microsoft Update/Windows Update instead, using a registry hack that similar to the trick to download and install Vista SP1 directly from Microsoft’s server.
The hack to install XP SP3 Release Candidate 1 is actually a script to add a registry key that allows WU/MU to assume the computer is a target machine for private testing of XP SP3 and thus permits access to the RC1 of XP SP3. Simply download WinXPSP3RC.cmd (alternative download link), and then run the batch command script to create the necessary registry key.
After, that, just check for updates in Microsoft Update or Windows Update. Before installing SP3, it’s recommended to uninstall all previous beta of SP3 first. You also need genuine legit copy of Windows XP English edition which can pass validation, as the system may need to update Windows Validation Tool (WGA) before allowing you to download SP3.

If nothing goes wrong, you should see a high priority update listed in WU – Windows XP Service Pack 3 (32-bit x86) Release Candidate 1. Be warned that SP3 RC1 is still a beta, and should not be used on production system or else it may cause instability. After installed SP3, the Windows XP will have version 5.1 (Build 2600.xpsp.071030-1537 : Service Pack 3, v.3244).

Windows XP SP3 is compatible with all versions of 32-bit Windows XP x86, included Embedded, Fundamentals, Start, Professional, Media Center, and Home Editions.
For standalone offline installer package, download from here.
Update: New beta version for XP SP3 – v.3264.
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October 3rd, 2009 16:05
I have a pirated version.. How do i validate xp sp3?
October 3rd, 2009 16:05
how do i validate xp sp3?
March 29th, 2008 00:56
This Dutch translated page is almost unreadable… And I am pretty fluent in English !!
February 21st, 2008 01:32
Very bad translation!!!
December 21st, 2007 12:24
[...] than hack to install Windows XP SP3 Release Candidate 1 via Windows Update, Microsoft also released the standalone installer setup package for Windows XP SP3 RC 1 which can [...]
December 10th, 2007 15:10
WINDOW XP P3
December 3rd, 2007 09:45
Build 17051? No news or no leak yet.
December 3rd, 2007 05:23
Where is Vista SP1 RC1?
http://blogs.zdnet.com/microsoft/?p=985