The Good
Winsock LSP enhances your security by disabling and malicious network commands. Furthermore, Quality of Service, stream-based, URL content sniffers, data logging, and stream based network sniffers can all be done with LSP.Â
The Bad
Hackers can use LSP as well. Adware and spyware programs powered by LSP can steal Internet communication.  Hackers can then collect this stolen information; financial information is not safe from malicious LSP programs and SPAM authors can use the private information in their SPAM campaigns.Â
The Ugly
Improperly installed or buggy LSP programs can corrupt and damage the Winsock catalog with the Windows registry. The same is true for any LSP program that does not register itself properly. This causes a loss of network connections.
Chris