oh yeh,
what happened is that since your current o.s. is upgraded with the sp2
update,
the version on the cd is old. Unfortunately, the cd is useless "unless" you
unistall
sp2 first and revert your o.s. backwards.
Keep this in mind if your system ever crashes and you find
this problem if you try to use your cd.
As a project for you, try to stream the sp2 down to your pc
and make a cd for it. Its a worthy project and you may need
to get this prepared for an emergency in the future.
There is a way to merge the sp2 with your files on the windows
cd. But you need to find the site with the details on how
to merge and create a new cd.
In the interim, since the o.s. on your harddrive, is the only
functional copy you have now, you should create a disk image of it NOW.
That way if you need to wipe out the harddrive and install the original
windows on it with your cd, you can restore your disk images over it.
Look for Barts PE, DriveImage XML, the DriveIMage XML plugin for
barts pe. Also, you will need you original windows cd and the streamed
sp2 so that all of these can be merged onto the PE disk.
Not sure how many cd's you will need, but if you had a dvd rw,
it would only take one for the PE and setup files. The actual
disk images of your hd, should be kept on a seperate partition
on the harddrive as this will be easier to keep and reinstall if
you wipe out/format the main partition.....