Hard Drive Trashing After SP2 + KB934458

Hi. Has anyone else had any problem with their SQL Server 2005 going nuts after installing the SP2 + the above hotfix?

We reboot the SQL Server and as soon as SQL receives a command of any sort, the SCSI RAID 5 hard drives light up and start trashing. Therefore every query and even Windows response time is painfully slow or fails to respond. When we look at the Activity Monitor and sp_who2 there is a process running a Select Into from Microsoft SQL Server Management Studio using the sa account from the last database name in our system. So we can't kill the process as it says "Cannot use KILL to kill your own process. Microsoft SQL Server, Error: 6104)".

The last Transact-SQL command from this process is:
create table #tmpDBCCinputbuffer ((Event Type) nvarchar(512),
[Parameters] int, [Event Info] nvarchar(512))
insert into #tmpDBCCinputbuffer exec ('DBCC INPUTBUFFER(56)')
select [Event Info] from #tmpDBCCinputbuffer

The only other issue I should mention is that we had to uninstall and reinstall SQL Server yesterday as SP2 only half installed. The SP2 install log indicated that SQL SP1 wasn't in a good state as we previously (3 months ago) performed an upgrade from Windows 2000 Server to Windows 2003 R2 Server.

Our other 3 Windows 2003 R2 Servers which were a clean install of both Windows and SQL are running fine.

I've been insisting that we do a new clean Windows and SQL install, but the other team members insist that it's been fine until we installed SQL Server SP2.

So can anyone provide and help or evidence to say who is right either way?

Thanks.