To check if the patch was downloaded, start Windows Update and click on the link in the left column that says View Installation History.
I have tried to use the XP firewall, but all I have ben able to do is make it block ALL internet activity, so nothing gets in or out.
I've have used both hardware and software firewalls and the only potential drawbacks I have seen are that they can cause problems with multiplayer gaming or running a server, which can usually be fixed with some tweaking. People have told me that they have seen lower throughput, but that's never happened to me.
Hope this helps.
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