if you only have an xp sp1 disk then id say its essential you install SP2 and completely update windows.
get some form of spyware protection, and id install WinRAR aswell as you always end up needing it at some point. XP SP2 has a firewall built in so you dont really need to have another one.
Studio Comp: AMD Athlon XP 3200+ OC ~ 2.35GHz runs at 40 celcius idle and 48 under stress (aerocool GT1000 really works!), Asrock K7VT4A , 1024MB Dual Channel DDR 400, MSI Nvidia FX5200 128MB OC ~ 600MHz mem 350MHz core,80GB SATA + 200GB SATA + 120GB IDE, 7.1 Channel Soundblaster Audigy 2 Platinum EX sound and midi interface. 19" Sony SDM-HS95 TFT monitor - sweeet
Comp2: AMD Sempron 2400+ OC ~ 2.0GHz (Stable), Asrock K7S41GX, 512MB DDR 333, Onboard Graphics, 40GB Maxtor IDE
set of monitors on the way soon :P
Google is your friend... WorkComp: LAPTOP, intel celeron D 2.4GHz, 256MB DDR, 20GB hd. NO SCREEN IT WAS SAWN OFF :S (bag of crap)
I usualy go about installing:
-AntiVirus and FireWall
-Ad-Aware
-ALZip
-Mozilla (not firefox)\
-FreeRAM XP Pro
-SpeedFan
-KH Blocker
-Nero
-Advanced Windows Care
-Copernic Agent Basic
-Open Office.Org
-Tor
-Sun Download Manager
....
and the list goes on, what i usualy do is before i do a system restore, i write down a list of apps i have already installed, then i cross of the ones i dont thing i will need anymore then re-install everything again...
i myself have created a slipstreamed unattended full customised windows XP service pack 2 installation cd to use so all i do is put the disc in the drive, come back in about half an hour and my computer is restored then spend time installing all of the above plus more.