For the original problem heres a microsoft article about it.
http://support.microsoft.c
So after extracting SP2 I'd re-apply it that will put the files in C:\WINDOWS\ServicePackFile
then use method 2 to tell windows where the files are. (Or you can burn the contents of C:\sp2 from the instructions above to CD which should also work.
Terry
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by: qz8dswPosted on 2007-11-10 at 13:54:49ID: 20257148
As per Step 2 at http://www.winsupersite.co m/showcase / windowsxp _sp2_slips tream.asp
.exe to xpsp2.exe if you'd like.) Now, create a new folder called sp2 on the C drive (C:\sp2) and then copy this file to that location.
You can extract SP2 to any directory you want to.
"(You can also rename WindowsXP-KB835935-SP2-ENU
Now, you need to extract the SP2 files. To do so, open up a command line window by navigating to Start, and then Run, and typing "cmd" (no quotes); then hit ENTER. Then, using the following commands, navigate to that folder and extract the files (Note that the text [ENTER] means hit the ENTER key):
cd \ [ENTER]
cd sp2 [ENTER]
xpsp2.exe -x:c:\sp2 [ENTER]"