Windows Update still works on XP
I can confirm that even with the changeover to SHA-2, Windows Update on XP can still download updates. I was setting up an old machine at work the other day for legacy compatibility purposes (Zip and SuperDisk drives) and it was still able to get updates.
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Likewise, it was working for me under an XP VM I've got. 104 new updates received (although, most were the POSReady 2009 ones from months back from that little trick I did with the registry). You must've gotten the whole lot which should be usual for a newly-set up system.
You wouldn't think Windows Update work for XP three months after POSReady 2009 came to an end, let alone the main OS itself five years ago. Still and all, a miracle.
And how much are we betting for the same to happen for 7? lol
Windows Update works on Windows 2000 as well, but you need to install updated root certificates (available from Blackwingcat) and the updated Windows Update Agent (available from Microsoft). Also disable SSL 2.0 and enable TLS 1.0 in IE.