Is there a way to remove SP1,
There is no need to do that. In fact if you would do this, what is the use of ALL the security updates/patches if you remove them??????? SP2 does NOT replace SP1, it is an addition.
New sp2 update doesnt work for me ... it said coulkdnt find specific file etc or something
Indicating a corrupt or illegal Windows. Have you tried to install [url=http://www.microsoft.com/downloads/details.aspx?FamilyID=049c9dbe-3b8e-4f30-8245-9e368d3cdb5a&displaylang=en]THIS[/url]?