P4 Processor Alert in Device Manager

I decided it was time to reformat my P4 1.6 ghz Sony Vaio Win XP Home. After reinstalling windows and all drivers and windows updates everything worked beautiful. For a few hours anyway. After the 3rd or 4th time rebooting it started to take a long time to boot and then said it needed to chkdsk. It gave some error about an update.sys file in the system32\drivers. The Device Manager now shows errors in the system folder, nic card and processor. I tried restoring to earlier in the day when the computer ran fine but still get the same errors. I have already installed SP2 and my question is can I try repairing Windows with the XP SP1 disk that I have or do I have to uninstall SP2? Do you think repairing Windows will fix these errors or could it be something physical, like the processor?

YOu will have to go back to the SP1 disc since it will be recognized as a previous version to SP2. In other words, reformat again, unless you can get a slipstremed SP2 disc.

Had to replace the hard drive. Windows wouldn't even install.