Windows XP Update SP2 gives Error OX80070017

[ZEDFOR]

 I have a Gateway computer Model Number 500X. Serial number 0030094073 which has installed Windows XP service pack 1.
 
I experience a problem trying to update Windows to Service Pack 2 or 3 and getting the error message OX 80070017

I have run a PC Doctor check on all hardware and have received the following error messages:-
1. Hard Drive; failed linear seek test  code 2811-201
2. Memory; failed pattern test  code 1011-201

The Hard Drive is a Western Digital WD 2500JB 53 EVO enhanced IDE drive.
The Ram memory is one 512 MB DDR 333HTz MY16VDDT6464AGL335C4 PC2700U-25330-B1

Questions.
1. Are the errors messages for the hardware indicating a need to change out those two items.
2. Are the hardware errors messages indicating the reason that I cannot download Windows XP Service Pack 2 and or 3
3. If changing out the Hardware, I believe any Hard drive with IDE will be OK; is this right?
4. I have heard that Windows XP Service Pack 2 and or 3 needs 1GB RAM is this so?
5. If changing the Ram do I have to replace it with the same size memory (512 MB) or can I install say 1G.

The motherboard does have two Ram (DIMMS) slots so if in doubt about the motherboard supporting 1G RAMS then I guess I go to two 512 MB if it is necessary to support Windows XP Service PAk 2 and or 3

I would really appreciate help on these issues.

[Tranc3r]

1. For hard drive issues, and better results, try doing a Seagate analysis testing. [do the long analysis]
SeaTools http://www.seagate.com/ww/v/index.jsp?locale=en-US&name=SeaTools&vgnextoid=720bd20cacdec010VgnVCM100000dd04090aRCRD

4. I was successful with installing SP2 and SP3 with 512 Mb of RAM and my computer is very old.

Also, I think that error is because of bad media file, as in the setup file is corrupted, try downloading SP2 manually from another source or try to do a Direct download from the Microsoft website via Internet Explorer.