There's not a whole lot of new info here, but I know there continue to be questions about IE 7 and Windows XP SP3, so here we go... A post from the IE Blog:
XPSP3 will continue to ship with IE6 and contains a roll-up of the latest security updates for IE6. If you are still running Internet Explorer 6, then XPSP3 will be offered to you via Windows Update as a high priority update. You can safely install XPSP3 and will have an updated version of IE6 with all your personal preferences, such as home pages and favorites, still intact.
If you are currently running IE7 on XPSP2, Windows Update will offer you XPSP3 as a high priority update. If you choose to install XPSP3, Internet Explorer 7 will remain on your system after the install is complete.