We have 900+ workstations with mostly Windows XP SP1. We have a few
workstations with Windows XP SP2 (about 5 total). We use Zenworks 7 to
manage group policies. The administrative machine used to edit the
policies is running Windows XP SP2. A few months ago, I read that our XP
SP1 machines would work fine with group policies edited on a XP SP2
machine. However, I'm starting to see some strange behaviour (e.g., only
some policy settings are applied like proxy settings) on our XP SP1

The Zenworks 7 documentation states "If you use ZENworks 7 to manage group
policies, we recommend that you do not upgrade to Windows XP SP2 because
of known issues." What are the known issues? Is it necessary to have two
policies: one for SP1, the other for SP2?