DamageInc, please get some of your information right!

Using the FCKGW (Devils0wn) key, you can't get SP1. There are some keys now that you can use SP1 plus all the current updates (so i've heard). Also, I used that when XP first came out (question, do you buy a car without test driving it? a sofa without seeing if it's comfortable and fits your decor? clothes without trying them on? No? Right, then i'm perfectly ok to try out some software) and it's no less stable than the version I bought from the shops a couple of months later. It is in fact identical, apart from a couple of files changed to not require it to be activated.
Now, assuming that he is actually using a corp version provided to companies, then your admins should be able to help. My first thing would be to try another PSU, as a generic 300W is pushing it for that setup. Next, run
Memtest86 to make sure your memory is OK. Then, try unplugging all unneeded peripherals/devices that aren't required to run setup (ie leave CPU, gfx, 1 stick of memory, hdd and a cd drive)
If you do have the pirate version, then tough luck, you got a bad copy.
Confused