If i could make you a pizza and offer you a beer or glass of wine to go with it... 
-dantheman
LOL - only if you deliver!
Glad things are working out for you.
Re. SP2 - personally I would go for it - the benefits outweigh any drawbacks (not that I have experienced any).
Some things you may want to try to get you system running smoother:
1) Download "crap cleaner" and let it root out all the rubbish on your system. I wouldn't use the registry fixer in it though - just delete rubbish files. Just be careful you diable 'delete cookies' for your browsers otherwise you will have to log in to all websites again when you visit them.
2) Use a fixed pagefile size (do a search for previous discussions on pagefile size) rather than letting windows manage it - it saves the file becoming fragmented and removes the need for windows to constantly grow and shrik the file. Rule of thump is 1.5 x the size of your memory. You can change it by going the "System" in the control panel. Click Advanced > Performance settings and choose the Advanced Tab. Click on Change and select the drive you want the page file to be on (if you have one hard disc use the drive windows chose - if you have 2 hard disk drives - not partitions physical drives - put it in a partition on the second drive and then set max/min sizes to 1.5 x memory size). Here is mine - I have 2Gb of memory (ie. 2048 MMb):

If you click on each partition one at a time and select No Pagefile - except the partition where you want it - on that one click on custom size and enter the max and min values. Click OK and then reboot.
3) Get a decent defragmenter (I use Perfect Disc - it isn't free but it is very good. If you do buy it there are often discounts, and make sure you buy the full version - not the suite which is crap). There is another thread (do a search on 'defrag and you will come up with a few of them here). Defragmenting your disc and reorganising the contents into a logical order (which is what PD does) speed up you system enormously. You can also do a boot time defrag in PD to ensure system files, that can't be defragged when Windows is running, are defragmented and put in sensible places on your disc. Windows built in defragment doesn't do the job properly.