Service pack 3 installed for me with no problems. I use Windowblinds, IconPackager and Objectbar on Win2k. I unloaded Windowblinds and Objectbar to do the upgrade and then re-applied after rebooting. What problem did you have?
Um..I don't have a msvcr.dll on my system. There is a msvcrt.dll that was updated by the service pack. Perhaps your service pack download was corrupted. If you unloaded Windowblinds before installing the update, I think it's likely that the problem is with the service pack and not Windowblinds.