Stop by my house, I’ll give you a copy of an XP Pro CD, so you can at least boot up into Recovery Console and delete the atmclk.exe (it is part of smitfraud) It may have a second part of it that will reinstall it, but you can use recovery console to make a dummy of the file and use the ATTRIB command to make it a system file and read only, so that it cant be replaced by the real one again. It may be enough to help you get further (or, the program might make atmclk1.exe) just like I know it makes hp101.exe when you do that with the BHO portion of it. (I found that out when I tried the same thing) LOL
I also recommend that you definitely get up to SP2. I’m not sure if you’ll have issues doing the SP2 upgrade with smitfraud in there, but I dont think you will as long as smitfraud doesnt freeze your computer up. There are so many holes in SP1 for spyware to attach, and get in with no issues… I am still puzzled why I still see computers with SP1. All of the SP2 bugs were fixed a long long time ago.