Win 7 (Ultimate) non sp1: clean install with sp1

Hello
Now, I'm still running a really limping version built 7600 of the OS 7 Ultimate that causing me to retire in anger at M$ for one and myself for not paying attention to maybe do a clean install with new version of the 7 SP1 released by Digital River and here @ the MDL Forums - the hash for the .iso is the same as Jan Krohn's .torrent found here @ MDL.
Initially my OS was X86 and over the time has updated to X64 (I've got just enough RAM for this) via M$ updates that somehow are set to inform me of which kb to download, this after the dreadly kb 971033 that really f**ked up my PC definitely had to be excluded from here.

Three months back the Windows performs a BSOD after watching streams and clips on youtube, followed by the whole screen being blurry with an infinite number of small pixels obstructing the whole desktop.The warning from Windows tells me that my driver is malfunctioning, but after logging into safe mode and standing out(!) with the extremely poor graphics (16 bit) for some time, then the system seems to recuperate from this and I can restart using normal Windows mode.When checking for any conflicts with the drive, windows tells me all is up to date; (?).

Anyway I've exported important files on external HDDs for precaution if this computer (at home) gives up during any installation of a clean OS Win 7 SP1 Ultimate or possible reinstallation (for not loosing any data and Office Outlook Mail files that lie in the registered Microsoft Office Enterprise suite 2007; this I'll upgrade to Office 2010 without loosing any subprograms from that suite that's been backed up on a separate drive).

Browsing several different forums, the majority of mods were for a clean install as my OS is a non SP1 (which the M$ Validation tool will not accept as my product id# OEM is only supported by Apple and an online activation is impossible) instead of slipstreaming the SP1 and getting rid of the nasty message This copy of windows is not genuine in the right hand corner of the screen.So, as the X86 no longer is supported (windows has an "old" X86 on the main HD) should the new installation include both the X86 and X64 .ISO with the English version of 7 Ultimate?

Do you have help that facilitates the installing procedure so my passwords and Videoediting programs won't get lost?

Thank you for posting ASAP here

Mr "limper" AKA Orgon

 

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@ urie.
That's what I think is a wiser solution as my file on USB stick is D/L'd from Digital River (in case a Repair Install over the current non-SP1 OS fails).
This time most probably I'll use te official Windows-Loader (by DAZ) for safety, but in the future after adding more RAM and new HD (maybe SSD after the price has dropped here in Sweden) I'll go for the Windows 8.
For gaming I still prefer Windows 7 and its logical ease of use that's quite intuitive like my OEM version 2002 Windows XP Professional CD.
Due to my stupidity at that time Bill Gates got his $$$ both for that CD and for Office Professional 2003 that are in my possesion.So, from now on M$ will not get paid any more money in ₣, £, $, € or any other currency from me .

 

... when I get to 2:nd step where the OS prompts you to update the system by going online, the installation of Windows isn't continuing to next part as it tells me that I've got to install Windows with SP1 to continue with the installation in the upgrade installation (not to loose my drives and filed information); M$ online doesn't recognize my 7600 version of Ultimate.
What am I doing wrong?
Help wanted as safe mode is my last resort right now.
Orgon

(Sorry if the image is blurred)

Edit. I'm using DR .iso # X17-59465 (media refresh)

 

Well, in the step 2 of the installation If I choose not to go online for updates then in the next information window I get the following two choices: 1) Upgrade. 2) Custom - Advanced.

The first [1] alternative is best as it supports my drives and should install the necessary updates such as SP1.
The second [2] alternative will entirely overwrite my current version with an aggressive approach to wipe off all other programs and files, favourites, customized Internet browser, ... .

(This second [2] option resembles more the option of a clean install which as I've heard isn't necessary as the updates can be "injected" by using the media refrsh DVD/iso into the OS thus avoiding the whole time consuming procedures of copying all the files to another HDD for backup).

So, which should I do; a total wipe on the HD or just inject the .ISO with the updates (this does not work!) ?

Help the ship is leaking...

 

So now I've backed up the important files and am slightly unsure if the wireless keyboard and mouse also need to have the drivers (information on CDs) copied as well - I know that Win7 recognizes these input devices and automtically will do the update once the new OS has been installed?
After the success with new OS, I'll give DAZ a try.
(Is it possible to make Win7 Ultimate Genuine by activating through M$ once the SP1 is installed and ditching the Windows Loader which no longer is needed?).

 

Lst part of back up important files; help(!)

I've got M$ Office 2007 Enterprise Edition version running and activated with genuine M$ id# after it was installed and registered since in late 2009; all updates are working so far.
As a clean install is being done for OS Win 7 Ultimate (X64) - English, the Microsoft Office 2007 Enterprise (English) might - but should not - disappear from the system after the new clean install of OS Win 7 is up and running with the missing SP1 again.
How do I best back up this as I don't want to get a new unreistered copy of Wondows and do the time consuming job of installing anew this software when the original product keys are stored on HD, hidden in the Registry Editor.
If the reg edit is the way to go, then must I use the Help and Support accessible from the -button and run it as Administrator ?

Thank you for guidance in answering to these queries