It does look like Pre SP1 Windows did have problems...
If Mesh provided you with a Windows CD and a CD Writer, you can perform a process known as slipstreaming.
This allows you to make a Windows XP installation CD with SP1 or SP2 already installed!
Have a look at some of these guides if you feel up to the chalenge!:-
If this isn't something you want to try - it might be worth asking Mesh if they can supply you with the necessary SP1 or SP2 CD - manufacturers sometimes will for a fee...
If you need any further help - get back to us!
All the best