I had a similar thing happen to a PC I was working on, although it was fine when it was just WinXP SP1, as soon as I updated to SP2 I had a working network connection, was logged on to the domain but could not see a network device listed in my device manager page or network control panel. I rolled it back to SP1 and everything was fine, it was a spare PC at work so I'm not too worried about it.
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