One of the two WinXP updates in the latest WU push broke internet connectivity over both dial-up (from two different providers) and wifi on two of my home computers. Connection would negotiate and DNS lookup proceed normally, but then no data would come down the pipe; it would sit there eternally at "Connecting to..."
I suspect KB951748 ("Security Update for Windows XP") rather than KB951978 ("Update for Windows XP") but I am not 100% certain as the sequence of events was to uninstall the second, try internet again without rebooting, fail, uninstall the first, reboot, succeed.
Oddly enough the same update(s) has/have not broken internet at work. I am not sure what the deciding factor is.
ETA: Thanks
memoryanddream. Seems to be a conflict between KB951748 and Zone Alarm. The semi-official word from the ZA folks is to uninstall (or not install) that update until this gets worked out between them and MS, and it's not known yet whether it will be a ZA build or a different MS patch that will contain the fix.