Index server is used to "INDEX" web sites, allowing the search function basically.
If it is NOT needed, REMOVE it. Which it sounds like to me that you are not using it.
Like I said before, my answer does not fix the sp2 question, but it solves your code red issue. Which I would follow ASAP.
I looked at the article. It is pretty straight forward.
When you tried option 3, %SYSTEMROOT%\system32\CatRoot\{F750E6C3-38EE-11D1-85E5-00C04FC295EE}\NT5INF.CAT file is corrupt
Did you extract the file from the same cd that you installed it from. If so then I would try getting it from a different CD. If you used a copied cd, get it from the original. If you do not have another original cd to try, I can always send you the file.
If what they are telling you does not work, and you have defineltley tried all 3 issues. I would contact them about this using their phone tech support. You will need a cc# to call them though. It's something that they know about since the posted asolution, but is not working for you.