>I'm thinking of upgrading to SP2 from SP1. Is it stable? Safe to install?

I have no problems so far with SP2, but that i sonly on MY development computer. All others use with SP1. From all I read I would say NO, it is not stable.
BUT I suggest you to do this:
Install SP2, Copy ALL Report*.APP to somewhere save and then uninstall VFP completely, Install it back, install SP1 and Copy saved Report*.APP back to the folder.
That way you should have VERY beautiful enhancements of report builder and report output from SP2 and stability of SP1.