ok as a home user with no network to speak of ( i just have 1 computer) do i even really need SP2??
I would say so, yes, but wait for it to be released on windows update rather than downloading the entire SP2 manually. It isn't just about increased network security, but the windows core itself now has a lot of security against memory attacks, buffer overflows, and other exploit methods that a singular computer on the internet is vunerable against. Let's also not forget that a good part of windows libraries and executables have been recompiled to take more advantage of processor features, and thus a slight increase in preformance.

The minor errors from the new ICF (windows firewall) can be overcome by turning the damn thing off and installing a different firewall.