Dell Windows XP factory reset.

Hello Experts,


I have Latitude D505 laptop with Windows XP, kept updated to latest
Windows SP3 .. however, to ensure I have good speed and efficiency I
would require to do factory resets from time to time.

I hear that Microsoft will stop support of SP1, SP2 and in couple of
years to complete XP. I have the following questions..

1. Please can you give me the complete procedure for Dell Latitude D505
factory reset (with or without install disks) ..

2. I see in various forums that if I do factory reset, all my windows
update which I have been doing for ages will be gone !
How to know which service pack my laptop will revert when I do factory
reset.

3. Given that Microsoft support wouldn't be there, what does that mean ?
Cannot I do factory resets after 2 years from now.

4. How about SP 2 ? If my laptop resets to SP1a, How to do I download
SP2 ? http://tinyurl.com/6fh7x6e and
http://support.microsoft.com/kb/322389#tosp3 Can I use this link to
download to upgrade my laptop ? and use windows update to upgrade to SP3
?

5. What are the Pros and cons of downloading them in removal drive and
installing them separately vs using windows update.

What does Microsoft support stop actually mean to users ?

Please can someone give me the answers.

Thanks in Advance.
- P