No it doesn't do ANY of the things you say it does. There is the possibility of a slight decrease in performance, but it's better than the alternative of having your machine overrun by malware exploiting the security holes that were patched as part of the service pack.
Almost every time someone has significant problems with a service pack, it's a result of a malware infested system. So if you're experiencing issues, I would suggest that you check your system for malware, and stop erroneously claiming that it is the result of service pack 3.
While you're at it, if you hope to ever be taken seriously, you should at least make an attempt to spell correctly. A few spelling and grammar errors can be easily overlooked, but when there's a deliberate attempt to not even try, I find it very hard to take a person seriously, and look at them with the same general contempt I have for pre-adolescent girls in all their "OMG PONIES!!!1" annoying glory. Like I've said to others, if I were ever in the position to hire someone, and I received a cover letter and/or resume full of blatant misspellings like your post, I'd chuck the thing in the garbage and never give it a second thought.