Does Windows XP use salt when Hashing passwords?

I have been trying to find a clear answer to
this but most of the reading I found about this
is beyond my understanding at the moment.
Let me see if I am getting this right (I
realize this is a really dumbed down version),
the password string is put into a Hash Code and
then stored. Some operating systems implement
the salt as a extra security feature. Am I way
off with this or am I pretty close?

Does anyone know if Windows XP SP3 incorporates
a salt element when they hash passwords?

Thanks