A common question in regards to these settings is – does turning off Mutual Authentication mean we’re not secure?
The answer is that you’re no less secure than you were before installing Windows 2003 SP1, so it should not be a problem for most organizations. On the other hand, if you can use Mutual Authentication (which would require updating all servers involved in distributed transactions to Windows 2003 SP1), then it’s a good idea to do so. Hope this helps!