Well I have suspected Windows XP's SP1 to be more of a problem than a fix and now they are confirmed.
I did some benchmarking with and without SP1 installed and the numbers are intriguing.
First off, my modest system - AMD Duron 1.2gh, 512mb PC133 and Geforce2 MX400 w/64mb memory.
3dmark 2000 - Prior to SP1
3dmarks - 4919
CPU performance - 413
Game 1 - low detail - 95 fps
med detail - 70.0 fps
high detail - 36.2 fps
Game 2 - low detail - 104.2 fps
med detail - 63.7 fps
high detail - 40.7 fps
Just to highlight the whole test.
3dmark 2000 - After SP1
3dmarks - 4763
CPU performance - 398
Game 1 - low detail - 87.5 fps
med detail - 66.7 fps
high detail - 34.1 fps
Game 2 - low detail - 100.9 fps
med detail - 62.0 fps
high detail - 38.2 fps
Not much of a drop in framerates but a drop nonetheless.
In concluding, I read somewhere that SP1 cranks down some system components to offer maximum reliability and compatibilty. It seems that 3d components are some of them. I am reformatting and not installing SP1. Also, I have noticed my sound card - soundblaster live - is now popping and cracking, it didn't do that before SP1. Anyone notice any similar problems after SP1?