Cannot install if you have ever used DRIVE SWEEPER
If you have ever used this program try all available fixes (use a backup of your registery if you have one, or get one from the website) also use the windows upgrade prep. tool. This may then allow you to install sp1.
All fixes failed for me and I had to use a system image from back in December before I had ever used this program. (The install worked fine then) The reason for this is that drive sweeper is too enthusiastic about removing components and also removes some key windows OS files that are needed for service pack upgrades. Beware.