Well wumply I would and always do reboot when prompted to. If you wait and allow it to make the updates on the next normal reboot a couple of things happen. 1] You do not get to take advantage of the updates right away and 2] should you run other programs have a problem you will not know which one was causing the problems.
On the kind of updates you are talking about the download is to a temp file on your computer, then it installs the update from the temp file. Now you reboot and Windows will complete the install during boot. At this time the changes are made to Win XP. After this your boot ups should be normal....
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