If I have a legit XP license, it's one of the few times I have no moral issues with downloading WinXP SP3 via bitorrent. As far as I'm concerned it's the same thing as getting a replacement installation media, which Microsoft themselves will supply.
But that's just me. Seems easier than all this craziness.
It is legitimate, as far as I know MS license agreement. As long as you have a legitimate licese and SN - which I understand Mark has -, then you can get the media wherever you want, including downloading from wherever. Of course, it is in your own interest to get it from some safe source to be sure it has not been tampered with. So, I think you're right in not having any moral issue there.
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