Any suggestions, wisdom, on the order I do all the things to get back some of my system?
I'm sorry that the registry hack didn't succeed. Don't worry about the service packs - Microsoft will deliver them via its Automatic Updates service once WinXP is installed and online again. Just be sure you have the Windows product key available.
I recommend that you
Reinstall WinXP without reformatting the HDD(1) Disconnect the computer from the network. Unplug the Ethernet cable, or turn the WiFi radio off, as appropriate.
(2) Boot the WinXP setup disk and perform a repair installation. NOT a clean installation, and not a repair using the recovery console. Follow the instructions for "Method 2: Repair install of Windows XP by starting your computer from the Windows XP CD" (http://support.microsoft.com/kb/978788) When asked, overwrite newer system files with older system files from the CD.
(3) Disable Automatic Updates. Connect to the network just long enough to download SP2 (http://support.microsoft.com/kb/322389).
(4) Install SP2, then start the Windows Firewall. (It wasn't available until SP2, was it?)
(5) Reconnect to the network just long enough to download SP3 (http://support.microsoft.com/kb/322389). Disconnect and install SP3.
(6) Turn Automatic Updates back on, but DON'T set it to Automatic. (Otherwise IE7 too will be downloaded and installed automatically.)
Restore your old user account
(7) Rename your old user profile folder. If your account name was, say, ElanaAhova, then the corresponding profile folder was C:\Documents and Settings\ElanaAhova. Rename it to, hmm, C:\Documents and Settings\ElanaAhova_old.
(8) Create a new administrator account with the original account name (here ElanaAhova).
(9) Log out of the Temp account, and log into the new ElanaAhova account. (This creates a user profile for the new account.)
(10) Log out of ElanaAhova, and log back into Temp. Copy ALL the files and folders from the old user profile (C:\Documents and Settings\ElanaAhova_old) to the profile for the account you just created (C:\Documents and Settings\ElanaAhova).
Add a second, limited user account.
(11) Create a new administrator account and give it a new name, say, SuperElanaAhova. This will be your new administrative account, used only for installing programs and other work that involves fiddling with the OS. Give it a password, even if you don't intend to password-protect your everyday account.
(12) Log out of ElanaAhova and log into SuperElanaAhova. Change the ElanaAhova account from an administrator account to a limited account. (Backward, yes, but otherwise new limited ElanaAhova would be denied access to old administrator ElanaAhova's files.)
(13) Delete the Temp account. Password-protected SuperElanaAhova is the only administrator account now.
Scan the disk for trojans and viruses.
(14) Connect to the network. Download a fresh copy of Avira AV (http://www.avira.com/en/avira-free-antivirus) and install it.
(15) Log out of SuperElanaAhova, and log into (limited) ElanaAhova. (Since this is your new work account, you may as well get used to working in it.) Start a complete AV scan of all disks. (Yes, including that missing E: drive).
(16) When Avira is finished, log out of ElanaAhova and log into SuperElanaAhova. Download and install the security patches that Automatic Updates found.
I can explain my reasons, but I'm pressed for time just now. Let me know which bits you didn't understand, and I'll try to clarify them for you.