Your recovery disc will probably take your pc back to where it was when you bought it. You will have to apply all updates since then. It is possible to download any that you want and save them to cd by personalising your Windows update. I'm not sure if SP2 containes the SP1 files or not. I would wait for another answer to that one. If it does it would seem that you would have no problems with previous updates. As for your third point, that's just what I am doing. BB here, dialup at home.