Really way too many issues to list.
Start here and keep looking. If nothing else, there is a way to run XP SP1 and install the majority of the patches that SP2 included. If I were you, I would slipstream a CD with SP 2 on it, which may or may not work.
http://winhlp.com/node/125Start by reinstalling your OS. Then do SP 1, get an antivirus on there quick, get all patches possible, turn on system restore. Then try SP 2 again.
edited to add: I still think it is a driver or hardware issue. That's why you get a BSOD when you're installing SP 2 - a driver may be out of date and is not able to function with SP 2.