Microsoft has been forced to delay the launch of SP3 for Windows XP and halted the distribution of SP1 for Windows Vista because both updates caused problems with users of the Microsoft Dynamics Retail Management System.

Microsoft finalised the code for Windows XP SP3 last week and had planned to make it broadly available starting Tuesday. Microsoft had been pushing out Vista SP1 last week using its auto update feature and users can still downloaded the patch manually.

"While we are recommending that customers running Microsoft Dynamics RMS should not install [Vista] SP1, there are many other customers who can benefit from installing Windows Vista SP1 immediately, so we are maintaining availability via (Windows Update)," Microsoft said. "We are delaying the release of Windows XP SP3 and holding any additional automatic distribution of Windows Vista SP1 as a precaution and to help ensure that our customers have a great experience with Windows."

"To help protect our customers, we plan to put filtering in place shortly to prevent Windows Update from offering both service packs to systems running Microsoft Dynamics RMS," Microsoft said. "Once filtering is in place, we expect to release Windows XP SP3 to Windows Update and Download Centre."

Microsoft advised those running Microsoft Dynamics RMS to not install either service pack. The company said a "fix is currently in testing and will be available as soon as that process is complete".

Michael Warrilow, managing director of analyst firm Hydrasight, said the glitch will not cause serious disruption as Microsoft Dynamics RMS is a relatively obscure product amongst Australian businesses.

He added, however, that the conflict is indicative of an underlying problem within Microsoft products.

"Here [Microsoft] have their infrastructure breaking the products that they make — it's endemic of the problems they have with the complexity of their products," he said. "I think they are starting to hit the wall with complexity."

The problems are unlikely to stop enterprises adopting Vista in the long term, Warrilow said: "The second half of this year and the early half of next year is when we are finally going to see Vista take off in business."