Hi All,
Personally, I dont think that windows XP is something that should really be connected directly to the internet, I mean you really want to have a dedicated firewall and NAT (network address translation) between your network and the rest of the world. It sounds like they want to add unnesscessary risk.
from my experience, the only thing that XP SP2 offers, is that it turns on the built in firewall by default. In my college dorms we had a data trunk, and everyone had a public IP, I have seen worms slip right through the firewall on the fully updated machine a few people who's computers I fixed, even some had been hacked!.
You should have seen my firewall logs, 1000's of attempts an hour!
If you are going to connect it directly, I would invest in a good software firewall (zonealarm, black ice, etc.) and make sure you patch it as soon as they come out.
just my opinion.