OK sry for spamming a bit, gonna post full fix and prep here.
First be prepered. Grab SP3 from the fine link provided above.
Next install recovery console.
1. Insert the Windows XP CD into the CD-ROM drive.
2. Click Start, and then click Run.
3. In the Open box, type d:\i386\winnt32.exe /cmdcons where d is the drive letter for the CD-ROM drive.
4. A Windows Setup Dialog Box appears. The Windows Setup Dialog Box describes the Recovery Console option. To confirm the installation, click Yes.
5. Restart the computer. The next time that you start your computer, "Microsoft Windows Recovery Console" appears on the startup menu.
Start and Install SP3. If it reboots, gratz, if not follow next.
Boot into recovery console from start menu and log into ya windows install with any passwords you've set for admin account.
type the following commands.
REN C:\Windows\System32\GDI32.dll GDI32.dll.orig
this will rename GDI32.dll incase of any problems.
Next type.
copy C:\Windows\ServicePackFiles\i386\GDI32.dll C:\Windows\System32\GDI32.dll
This will copy over GDI32.dll from SP3 files.
All should be fine now