How should I implement new Service Pack?

Our initial rollout is using the EPDM 2011 SP0, which is what was on the installation DVD.  I'd like to start planning to move to the latest service pack, but I want to understand the proper procedure before I start changing things.

Does a SP update require changes to the server(s), and if so, need they be shutdown or restarted?

Does each client need to be updated individually?

What pitfalls may occur as a result of such an update?

Thanks.

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