yes the servicepacks are inclusive. If it's telling you it doesn't have the usb2.0 drivers (i.e. if the enhance host controller is showing up with a yellow exclamation mark) just right click it and say "update driver" and tell it to automatically pick the best driver. It should update the driver on it's own. I've had lots of problems with xp not properly installing the 2.0 drivers like it should and that always fixed it.
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