You should be able to upgrade directly and yes it's OK for Home. I think the doubts originally expressed were to do with XP Gold (no SP) and Media Editions, but I think that's all been taken care of.
We did a thread over at McAfee with lots of helpful links regarding SP3:
http://community.mcafee.com/showthread.php?t=220807
Thanks for that Peter,
My reason for wanting to upgrade to SP3 is that I have problems with my OS since trying to remove a Trojan.
A Deckards scan has revealed that I now have two bad sectors on my E drive, and IE7 keeps randomly crashing the system.
Since my OS is an OEM supplied one, I did a factory re-set, hoping to escape from the problem, before I was aware of the HD fault, and this took me back to XP SP1 -November 2003, when I purchased the machine!
I installed SP2 from a Microsoft disc (Courtesy of PC Advisor), but the real gut buster was the 20 hours I spent coaxing my machine to accept the 98 updates that had followed SP2, all to no avail, since I still have the problem!
Now that I'm aware of the bad sectors, I've run "scandisk/r", which I understand marks the bad sectors so that the machine does not try to write to them, but of course, that will not restore what ever has been previously written to these areas, ergo the continuance of the problem.
My simple logic says, now that the "traffic cones" have been placed round these "potholes", another attempt at a factory re-set may be successful.
Hence I wanted to try another re-set with this failing drive, but couldn't face installing all those updates again!
Since I'm not 100% certain whether my woes are caused by the above, or if there is still something nasty lurking in a dark corner of my machine, I was not confident that downloading SP3 and burning it to disk, would not incorporate something "extra", I was loathe to do that.
As I help out at a computer literacy class, I managed to blag a copy of the recently released "Network edition" today from the school's computer engineers, and was hoping to do a re-set this week, but booting my machine today, I got a BSOD, and that has rather panicked me!
What would you advise??