Windows SP2 Install Error "The system cannot find the file specified"
I experienced the same problem with a system running XP Home Edition. I overcame the problem by doing a repair installation of the original version of Windows XP, then running the SP2 installation program. Boot to the original Windows CD. Select to install windows. Select to repair the existing windows installation. I hope that this helps you. I found your post when looking for a solution (which I did not find on the web.) Good Luck!