About the only real issue is with older P4's as you need to Flash the BIOS so they will work after the Service Pack is installed.
There are a couple of known compatibility issues the main one being Wireless connectivity and some network printing problems as well. But generally speaking there are work arounds for these problems and they are fairly easy to get around.
Where you may have some problems is with some older software no longer working properly with SP2 installed but I haven't run across any business applications that are affected.
The main problem that I've run across is people not Flashing the BIOS and when the unit reboots after the install they see a POST screen and then nothing but a blank screen. Wireless is a bit painful as well and some network printers no longer work as network printers or they can be very slow to actually print but again this is generally restricted to the older printers.
While I really have not had any major problems I do understand that HP tell their users not to perform the upgrade although I have no first hand experience of problems associated with this.
Col