This seems to be the #1 issue seen in the field so far with XP SP3 and typically, unfortunately, relates to OEM XP installations that includes the Intel CPU driver on machines that are clearly AMD based. Previous to SP3, this would not cause problems. I will leave my rant about most OEM builds for a future date.
If you have an AMD based machine that seems to be rebooting continuously after installing XP SP3, and it is running an OEM XP install, please investigate KB
888372 for the fix.
Personally, although I know it isn't exactly the most elegant or supported method, I've simply deleted the Intelppm.sys from %windir%/system32/drivers on machines I know are AMD based, before installing SP3. You won't want to do this to Intel based machines because it will render them unbootable until you replace the Intelppm.sys file.
I wouldn't be surprised to see an updated hotfix that replaces Intelppm.sys from SP3 with a version that does not crash on AMD based systems. A few CPU calls is all that it takes to 'bail out' on an AMD system instead of toggling bits on the CPU that make it crash.
Update: Looks like I'm behind the times on reporting this one - as shown
here by Bill Castner.