If it's damage on the disk, once it's marked as such by chkdsk it won't be used again when you reinstall, so you won't get the same problem.
There's no hard problem with SP1, otherwise none of us would be here. (except maybe for what happened to me - an apparent hang at 99% complete - black screen - frozen keyboard, but I left it alone for 30 minutes because I could still see disk activity, and all was OK when I rebooted. Others have reacted at the same symptoms with an immediate reset and ended up with a broken system)