Do i need SP2?

I am running XP pro with all updates EXCEPT SP2.
AMD 64 2800 MSI K7N neo Platinum with a Gig of ram (2 x 512)and a 256meg
9600XT. WD 80 gig sata unpartitioned (primary boot disk) and an old WD ide
drive.

I have fallen victim to the "SP2 is bad" syndrome, I know of a number of
people who have had some major issues, yet I hear SOME other says otherwise.
With the system listed above I have had some issues with items like
speed..apps just don't open up as quickly as expected
I have come to the conclusion that PERHAPS the lack sp2 might be
bottlenecking this system.

Thoughts?