Ok so i ahve SP2 and im wondering why won't i update it, so there it goes... I update it to SP3, pc restart, windows wont boot, GREAT!
I end up at Safe mode deletin sp for 1 and the half hours. Can anyone exxplain why it fails, tommorow ill upload screenshot..

Clearly there's something amiss with your system because SP3 installs just fine on a healthy one.

Since it appears your memory passed and is not the issue then as I indicated earlier it would be best to rule out malware as a possibility.

Click on the "Prework" in my signature and follow directions exactly.

Once logs are posted we'll move you to the security specialist section.

I have media center edition... I have recovery disk so which basically reformats the drive and then install new windows which is Media Center Edition. I've done that and it's the second time, I think i got the same thing and thats why i dont want to update it.
Error: http://intense.890m.com/photogallery.php?photo_id=5

The important part of that error message is the line with the "stop:" error and line below it if there is one.

How to troubleshoot a Stop 0x0000007E error in Windows XP

I updated my bios and veideo card drivers, should i try installing sp3 again?

First let's just play it safe and rule out malware.

Click on the "Prework" link in my signature and follow directions exactly as instructed.

I did that already no malware detected...