windows xp servicepack 2 and popup blocking

I have formatted a PC and installed Windows XP + Servicepack 2 (from a CD).
All seems to work with one exception: the popup-blocking of Servicepack 2 is
installed and activated, but it doesn't work: the pop-ups are not blocked.
Can the reason be that I have not installed other updates from the Microsoft
website? Untill now, I have not made connection to 'Windows update'. There
are two reasons herefore: the last time I was hacked by making connection to
Windows update, and for the moment, the speed for the Internet connection is
very small (I have been hacked, so the ISP has made the Internet connection
very low because the limit of transport was transgressed).

Second question: is popup blocking also active in the intranet?