My experience with SP1 is as follows, if it fails to update then you can do two options, re-installing windows 7 new build, or run the windows 7 original disc and run the upgrade option and re-activate windows 7, you might have to type the product key again. This comes straight from microsoft if SP1 fails to install, i spent hours trying to figure this out and did a lot of searching. Ultimately i choose the upgrade option to prevent from loosing any data or programs, hence it worked, good luck!