After you are certain that there is no longer any malware resident on your computer you need to update to SP2.
SP 2 is a critical update that is primarilly directed at enhancing security for your computer and as Microsoft has stated - IT IS CRITICAL!
Microsoft - Steps to take before SP 2 installation
These are the steps you are advised to take before installing SP2:
1. Back up all your data.
2. Check out the Web site of your hardware manufacturers to see if SP2-related software updates are available for download.
3. Purge your system of all spyware and adware you may have accumulated.
Programs that are known to experience a loss of functionality when they run on a Windows XP Service Pack 2-based computer (to see if this effects you and how to resolve those issues)http://support.microsoft.com/default....wsxpsp2
Some programs seem to stop working after you install Windows XP Service Pack 2. To see if this affects you and what to do in order to resolve this issue:http://support.microsoft.com/kb/842242/
I would suggest updating then running AdAware and Spybot Search and Destroy BEFORE you install SP2.
If you do not have these two programs as yet, download, install, update and run
*AdAware SE: http://www.lavasoftusa.com/software/adaware/
(Run them from Safe Mode and set them to fix what they find.)
Also download, install, update and run the Microsoft Anti-Spy beta:
Microsoft Antispyware Beta: http://www.microsoft.com/athome/security/s...re/default.mspx
Do you have a dialup or a broadband connection?
Microsoft offers a free CD to install SP 2 and if you are on a dialup it is highly recommended.
In fact, even using broadband, it is a large file and you may get better results and an easier, more accurate install using the CD.
Order it here (free):http://www.microsoft.com/windows....lt.mspx
If you encounter difficulties or have questions, call 888-SP2-HELP for assistance.
Microsoft Security Product Support Policy
Technical support is available from Microsoft Product Support
Services at 1-866-PC SAFETY (1-866-727-2338).
There is no charge for support calls associated with Microsoft's security updates.
International customers can get support from their local Microsoft subsidiaries. Phone numbers for international support can be found at: http://support.microsoft.com/common/international.aspx