I am no expert here, but if you cant get windows fixed you could format your hard disk and do a clean install of windows. If you do that remember to back up your documents and stuff first.
I ran my laptop for three and a half years without formatting it until I (cleverly) connected to the internet without a firewall and all the windows patches. Then I got hacked and had to do a format. At the end of the day it turned out to be quite a good thing after all. It wiped off all the crap left around in my registry and elsewhere by old progs and my computer loads and runs faster now.
Are you on the internet Hotshot? If not then I dont really think you need SP2 anyway as its mostly just security stuff and having it installed causes windows to take quite a bit longer loading up.