http://www.michna.com/kb/WxSP2.htm
Check out that site for some further help.
It states on that michna siteL
You may have to buy a full version of XP if your installation is hosed because the recovery disks may not work.Another consideration is the following. Service Pack 2 does install on Windows XP OEM versions, i.e. those that came with a computer and are tied to that computer. But if you run into a problem, these OEM versions usually cannot do repair installations. Often they only allow you to erase everything entirely and start from scratch. In other words, with only an OEM install CD, you run the small additional risk, should the SP2 installation go wrong, of either losing your installation and having to start all over or having to buy a full version of Windows XP.
I really feel that this may help you however:
Reboot loop
If your computer is set to reboot automatically after a blue screen crash, you may never get to see the blue screen. In that case press F8 after the BIOS boot phase, when Windows begins to boot from the hard disk. You may have to press F8 a few times to hit the right time.
Then select the choice (new with Service Pack 2): Disable automatic restart on system failure.





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