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Router firewalls will stop most non-DoS incoming attacks.
On the other hand, few soho firewalls do anything whatsoever to slow unauthorized outoing traffic without extensive configuration by you, and many aren't powerful enough to be effective for this purpose. This means once on your system, malware has free access to the net. SP2 doesn't help in this regard.
Software firewalls are invaluable for identifying these unexpected outgoing connections and forcing them to ask permission.
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