As to the applications which wouldn't work with XP SP2, WebInspect was a specific one (they eventually fixed it), but I recall there were a few others (basically any scanner that used raw sockets).
As to researching alternatives, I don't work in IT at my company, but if you're testing out a new version of the operating system that you deploy to all of your employees, and the VPN client doesn't work, you don't research alternative VPN solutions. You just decide to hold off on upgrading several hundred thousand systems until everything works.