I have it on good authority that another change made with SP2 corrects the issue with SQL Logins. Just to recap, previously, if you turned on the password controls in GP that allowed password expiration, those expirations were controlled by Active Directory settings. The problem was that GP was actually sending the authentication 4 times. So if you wanted folks to have 5 tries to login, AD needed to be set to 20 tries. Obviously this was unacceptable for lot of network administrators.
Andy Snook of Fastpath brought the specifics of this issue up on MSDynamicsWorld and he was kind enough to pass along info that SP2 fixes this. It’s not yet documented that the fix is in there, but the documentation is coming.