AJCrowley: Gotcha, WRT the protected folders.
Paxx: I'm not a big fan of wizards, either, but as I said earlier, most can be bypassed.
Regarding the thing about not being able to see the content in the Windows folder, it only gives you the warning once for each protected folder. I think that's perfectly reasonable.
A few of the reasons why I love WXP (just off the top of my head):
The new Start menu. Not everyone likes it, but I think it's great. It made me stop using DX's Start menu. I love the two pane approach, and I love how it keeps my most used programs on top, while highlighting newly installed files.
System Restore. Has already saved my butt a couple times. You can buy third party programs that do this, but now you don't have to.
Built-in CD burning. I still use ECDC or Nero for complex jobs, but the built-in burning is great for simple drag and drop jobs.
Thumbnails for pics *and* video files. Yes, W2K has limited thumbnail support, but not like this. It even gives you thumbnails on folders, so you can see up to four files in the contents without ever opening up the folder.
Stability. Yes, W2K is very stable, but I find WXP RC1 even more stable. Of course, a lot of that depends on what drivers you need. My NIC driver sucked under W2K, but works great under WXP.
Easy user switching. Actually encourages you to maintain a separate Administrator account, since it's so easy to switch back and forth.
32-bit icons. Not much here yet, but give it time.
Taskbar skinning. Can't wait for WB to support this. It looks great in the Luna themes.
Real-time Help system. Very, very cool and informative. Much, much better than W2K's built-in Help system.
WMP8. Finally, MS got it right. Even the big window is skinned, and it has a lot of great new features, including a very cool full screen mode, in which (optionally) the controls fade in and fade out as you need them. And skins can have functionality instead of just looking pretty. For example, one has radio presets.
Explorer. A few neat little additions, like a new Details pane. It sorts numerically named files logically now, so that file2.ext is displayed before file10.ext. Using the back button will now show a highlighted file instead of always taking you to the top of the list.
I'm sure there's a lot more, but like I said, that's just off the top of my head. I'm always discovering little things that I like, that aren't exactly earth shattering features by themselves, but they all add up.
Of course, not everything is great (WPA comes to mind), but there's very little about it that I find negative. YMMV.