Microsoft delays Windows XP update

(CBC) - Microsoft Corp. has delayed the latest upgrade to Windows XP, its older operating system, citing "compatibility issues" between the software and its point-of-sale application for small- and medium-sized businesses.

Microsoft last week said it had finished work on Windows XP Service Pack 3 and it would be available for download on Tuesday.

But in tests over the past few days, the company found incompatibilities in an application called Microsoft Dynamics RMS, which is management software designed for small and medium businesses, so it is holding off on releasing the update.

The problem also extends to an update to Microsoft's newer operating system, Vista.

"To help protect our customers, we plan to put filtering in place shortly to prevent Windows Update from offering both service packs to systems running Microsoft Dynamics RMS. Once filtering is in place, we expect to release Windows XP SP3 to Windows Update and Download Center," the company told PC Magazine. "Until we have published a fix for this issue, we advise Microsoft Dynamics RMS customers to not install either service pack."

The company is putting filters in place to prevent users running Dynamics RMS from downloading the updates. Once the filters are turned on, Microsoft said it will release the packs for customers that aren't running the management software, although it did not specify when that might be.

The XP update will add networking and security improvements, and provide better compatibility with Windows Vista and Windows Server 2008 security credential providers, the company has said.