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Yes, you will have to reinstall SP2. You have to also reinstall all your programs as you can not copy them from one drive to another. They have to actually be installed as it puts a lot of files in the windows directory. The only stuff you can copy over from your old drive to your new drive are saved game files and other files such as in your my documents folder. Actual programs will not run even if you copy the entire folder over as windows does not have the files it needs to run it.
Remove your old drive and put in your new drive as your primary master. Load windows on it and update it with the SP2. If downloading takes too long you can order a disk from Microsoft. It's free. Add your old drive as a slave and then reinstall all you programs from the disks. You can then copy over all your saved files from your old drive such as your internet favorites and all your document files, as well as any saved game files you have. Keep that old drive as your slave untill you know for sure you have all the files you need transfered over. Could be a few weeks till you know for sure. If you run programs like Turbo Tax or Quicken make sure you copy over the files you need from those folders. I always go through the old drive and start deleting files and folders I know for sure I don't need. Then when your old drive is empty you can remove it.
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If it isn't broke, fix it till it is.
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