A copy of both disks will usually suffice as long as your Mom has her own product key for XP.
The best way to start troubleshooting this is to get an exact description of what happens when she tries to boot the system. This will include the exact text of any error messages that are displayed. From there one can usually determine where in the boot sequence that things are going awry. That'll narrow down a lot of the troubleshooting.
I'm not real sure about this as I've never tested it - but I've never had an issue with hard drive size and SP1 repair installs - so I suspect that Windows SP1 will recognize the entire partition. But, since it's a repair install, Windows won't mess with the partition - so there's no problem with trying it.
FWIW - you can also slipstream a copy of SP2 into the SP1 disk (using these instructions: http://www.winsupersite.com/showcase/windo..._slipstream.asp
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