Laptops usually come with a recovery partition for doing a system restore, so that it's returned to its original state. The software in these partitions may include drivers etc that you don't find in a generic ISO. Accordingly, that's what you should have restored your system from. Granted, the OEM system might not include SP1, but it does include all the other drivers etc you might need. Without those, other software might not work properly, or at all.
Once you've done the basic system restore, Windows update will automatically download & install SP1 and any other required updates. Or, if you've already downloaded SP1, you can install it yourself. Likewise, once you've done the basic system restore, you can start installing Office etc. Do note that many laptops came with the Office 2007 trial pre-installed. You may need to uninstall that before you can install the retail version.
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Cheers,
Paul Edstein
[Fmr MS MVP - Word]
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