I use WPA/WPA2 mixed mode. All of my devices use WPA2, but I have some neighbors who I allow on my WLAN also. Just thinking of it, I think both have XP SP3 now, so I just switched it to WPA2 only while writing this.
My old (3,5 years) Dell Inspiron 2200 with XP SP2 has the XP SP2 WPA2 update from Microsoft. There, the problem is that it when I install SP3, no SSIDs are found (latest drivers, tried everything) - thus, uninstalled SP3. It's only on once a month on average, so that isn't that much of a problem.
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