I think am good for now. The drive my OS is on right now is only 30gb so I would like to rely on the other drive(160gb, partitioned 50gb and 110gb) for programs and storage but if the sectors are corrupting it might not last long.
your not missing anything...
no, i mean your not missing anything by staying with SP2. SP3 is buggy for many and does not really offer any performance gains over SP2. its mostly just networking features (from what i heard).the only way that it seems to work 100% error free is if its installed with a windows xp SP3 disc from Microsoft (fresh re image of the hard drive).
when you reinstalled windows, did you choose the option "quick format"? if you did this may be why you ran into problems with your new install (not with SP3). when ever i reinstall windows i use the normal format. it takes longer but gets rid of all the old crap (not really but windows doesn't see it any more).