The big question: When will Vista SP1 and XP SP3 appear?
Answer: Early ’08.
Concerning XP, people are curious but not overly concerned since SP2 combined with Windows Updates has made XP PC’s ’round the world run better by a large margin.
Concerning Vista, people are very concerned about it because users of PC’s running Vista want their Vista fixed now.
For the curious, the Vista service pack will be 1GB in size. Yep. Huge.

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Vista Sp1 is out but no performance gains from out of the box Vista. Very disappointing. Vista SP1: No Performance Gain