New system SP2 install(no desktop)

Ok ill start from the begining. I replaced my motherboard, processor, powersupply, and ram. I have 2 hard drives 1 80gig and 1 60 gig from my origional system. My DVD, and DVDRW are also the same from the original system.

New system specs

Mobo: GA-K8N SLI Pro
Processor: Athlon 64 3800 X2
Video card:XFX Gforce 6600 LE
Ram: 2 gigs Corsair ram
Powersupply: 600w
Hard drives: Western digital 80 gig
: Unknown brand have had for 3 years came with VPI
Matrix from best buy
DVD DVDRW: doesnt matter

Now the problems I have been having. I reformated both hard drives, installed XP windows home edition 32bit with SP1, I had at this point I had to install a router so I could download SP2. I installed all my drivers for my video card, processor, and Mobo and Updated my Bios(tricky with the Dual bios)

I then proceded to DL SP2, it installed fine but after it reboots to the desktop, my programs in the task bar load and then the start menu, desktop icons, and task bars all disapear. The only thing left is the background which stays the same. I can access most of the computer from the Alt-CTRl-Del task manager, but for the life of me cannot get the desktop back.

I thought this might be from a DL version, so I aquired a Win SP2 disk. That had the same results. One of my friends said I should try installing windows with SP1 and 2 before I update my drivers. I figured this would be a good way to find out what exactly is causing this problem. Some of them also said I might need win 64 edition.

Have any of you ever heard of this happening, and if so would doing a fresh format and install before updates help. I hope I dont have to buy win 64 since I just basically spent a decent amount getting this one running. Perhaps there is something that I am missing. Any help or suggestions would be very appreciated, I personally would like to shy away from reformatting since everything went in alright and it just seems like SP2 is the problem. HELP!!!

Do you mean SP2? and if that is what you meant, I have a disc for that to now, do i need to install the network drivers before sp2?