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When I run the update program it reports that windows 8.1 is service pack 0 but according to the web its service pack 1 with service pack 2 soon to follow.

should the update program be updated to reflect this or is this just to minor to put right ?

These aren't Service Packs anymore. MS has changed strategy. No Service Packs for 8.x

The reason is the new Rapid Release strategy, by definition a Service Pack extends support for a product - they don't want that.