You weren't supposed to use System Restore
The instructions were to uninstall SP1, not to do a System Restore. That's probably why you're having problems. SP1 and SP2 have been out for several years. You're awfully late installing them. What I would do at this point is to undo the System Restore and THEN uninstall SP1, if you really need to. Frankly any time I'm going to make a major change (like installing a Service Pack) I make a full system backup to an external hard drive so that I don't find myself in the pickle you're in.
When you've gotten your system back like you want it, I urge you to get yourself an external hard drive and a good 3rd party backup program. You can set it up to do everything automagically at the time and frequency of your choice. 1 TB external hard drives are about $70 these days and a really good FREE backup program is the Easeus todo backup free which you can download from
http://www.todo-backup.com/products/home/free-backup-software.htm . That can save you a lot of time and frustration the next time something like this happens. Sooner or later it happens to all computers for one reason or another.