i do not know if this change in Internet Options that you describe is related to sp2. only popups and the firewall were really noticable changes, i thought...anyhow here is the place to change those settings back to how you like them:
Internet Explorer/Tools/Internet Options/Content/Auto Complete uncheck the forms box and check the clear forms box
Internet Explorer/Tools/Internet Options/Advanced/Multimedia and uncheck the box that says play web page videos
i would clear my temporary internet files for good measure:
Internet Explorer/Tools/Internet Options/General/Temporary Internet Files/delete files and i would check the box for off line content