i would upgrade to sp2 mate for sure as it sorts out lots of issues... the question should be why are you using norton 2008?
Its big bloated and not that great as its more of a jack of all rather than mater of one.
I can makes some suggestions of cheep (and they even do free home versions of some great software) all u need to do is google it mate.
first off virus : got to be avast been using the free one for years and i hit torrent sites alot!
second off spyware : super anti spyware is my wepon of choice
third off firewall : (i dont use this personally as i have windows firewall and site behind a router but i have used it in the past) comodo free personal firewall
just my ten pence worth tho buddy but make the break stop the bloat and get xp working quick again
i even went a step further and reinstalled xp from fresh to make sure all aspects of norton had gone - but thats just me