I've recently upgraded to XP SP2. I now find that in Windows Task Manager the
number of handles for the system process increases by about 250,000 per day.

Performance gradually decreases too.

I have tried using MSconfig to isolate the cause but without success.

My computer is a Toshiba M200 with 768Meg physical memory.

Any thoughts on how to isolate/kill the source of these excessive handles
would be most welcome.

Bob Colclough