I had problems with update to xp3 in .net framework issues . Got error messages saying could not be initialized in Sonic Foundry Acid 4 , never found out why . Formatted hard drive started all over ,back to xp1 no issues . All my software is way out of date except Biab ,the only one that matters to me . So newer software may all work with xp3 ,but not all software. If I had it to do over ,I wouldn't .