Correct. If you want to "fix" it, do an upgrade install from within Windows (don't boot from the disk). This is what I did with my vlited install, and it worked no problem; left all my installed programs alone. Had to install a couple of drivers after, but other than that everything was the way it was before the upgrade install (other than the install replacing the things I had removed with vlite). Then SP1 installed no problem. One thing if you do try this, be prepared for it to take a while, took about an hour for the upgrade install to complete.
Thanks for your help to all! What about the Windows Updates i have installed so far? Is the upgrade affecting the installation of them? Must i repeat installing them after upgrade is done? What about the performance and old "unused & dead" files after upgrading, is UAC (i have deactivated it) enabled after the upgrading method? Is it possibly better to do a fresh install? Thanks again in advance!
To tell you the truth I honestly don't know. After successfully running the upgrade install and installing the two drivers, I ran the SP1 setup and it installed. I would assume that all the previously updates would be gone (never checked), but seeing as the SP is supposed to be inclusive of all previously released updates there should be no need for installing them prior to installing SP1.