Windows XP SP2

I installed winxp Pro + sp2 recently knowing all what i read that microsoft has acheived a milestone!.The intallation was clean but now svchost.exe keeps on crashing and one peculiar thing I am not able to access the internet. IE options are correct. my LAN connection is OK. Even it is Pinging to the DNS server. First I thought “Windows Firewall” may be blocking outbound traffic but then the popup should have come that also is not the case.
Note : I have win 2000 Pro. dual installed with winXP.
Any suggestions !!