As we all know Microsoft has released the final version of Windows XP SP3 to public and its available via Automatic Updates, Windows Updates and Downloads Center.
Earlier we posted about it at following link:
Windows XP SP3 RTM Available on Windows Update, Automatic Update and Download Center
You can download the SP3 from the above mentioned link.

I have received a few mails mentioning a strange problem which occurs while installing SP3 in Windows XP. A few people told me that whenever they try to install SP3 in Windows XP, Windows shows following error message:
Service pack 3 setup cannot update a checked (debug) system with a free (retail) version of service pack 3, or vice versa.

The reason behind this problem is that the update package installs retail bits on retail builds and checked bits on checked builds. But you can spoof Windows updates in order to install retail bits on checked builds and vice versa.
If you are also facing the same problem, then follow these simple steps and your problem should be solved:
1. Type regedit in RUN dialog box and press Enter. Now goto:
HKEY_LOCAL_MACHINE\Software\Microsoft\Windows NT\CurrentVersion
2. In right-side pane look for a String value "CurrentType". Change its value to Checked and if its already set to Checked, then set it to Free and click on OK.
3. Exit registry editor and try to install SP3 again. Now it should install without any problem.
This article was posted by VG in following section: Troubleshooting, Windows XP.
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Tahir
I m facing this problem during installation Service pack 3 but u told a mathod about installation xp SP 3 i did but still having thish problem and error still appear when i install service pack 3 i change regestery value on "FREE" but error still "Service pack 3 setup cannot update a checked (debug) system with a free (retail) version os service pack 3, or vice versa." so tell me what i do
VG
^^ Try to change it to "Checked" and don't restart your system.
Deep
Thanks a lot...! I had searched a lot of topic but none worked except yours:)
Alan
I am updating XP Media Edition with your regedit change. I had a problem with icons missing in the Control Panel / Administrative Tools folder.
"Checked" is the way to go, well done VG
Ankur
Well done!!!
theSEKIman
in my registry it was "Mulitprocessor Free", i tried first with only "Free", didn't work, i tried than with "Checked", it works, after installing SP3 i didnt restart my comp, i got into registry again and changed the value back to "Multiprocessor Free", closed reg, restart and work like a charm.
Hubert
Thanks VG ur the best!
Eden
Thanks, it works! :)
sikanrong
if it says multicore free change to multicore checked and itll work
SBGABBAR
OMG dude u r awesome thnx now i can play gta IV Lol thnx dude