You should be just installing SP2 to begin with, so don't worry about SP1 at all. Microsoft service packs are cumulative, so everything that was in SP1 is in SP2.

Also, depending on the speed of your system, the service pack install may seem to "freeze" at some point, when in fact it's still actually working as it should, just taking awhile.

Your actions may well have just made your problems worse however. Now would really be an excellent time to back up everything you don't want to lose, then make a slipstreamed SP2 XP Install CD. After which, you format and start over, this time with a fresh system with SP2 already installed.