Well, I had to revert to the image I created before installing the SP. It appears I'm going to be one of the few exceptions who cannot update. Shortly after rebooting I noticed one program didn't work. First it reported it could not find \system32\olepro32.dll. I copied that file from another system and then it said it couldn't find vbscript.dll. Copied that also and the program worked, but then some of my desktop shortcuts said they couldn't find the program to which they were assigned. I went directly to the program files and tried to run the program .exe files, and they also said they could not find the program! Never saw that before, but okay.
Bottom line, I had to restore to the pre-sp state. Tried both the stand-alone .iso AND the Windows Update push. Oddly enough, the latter broke the system as it was downloading. Got to about 35% downloaded and I noticed those two .dll file were again no longer in my \system32 folder.
My W7 home installation was an upgrade over a Vista installation, so I'm guessing that has something to do with the issue. Anyway, it appears I won't be installing sp1 for now.