Questions re migrating to a newer PC

I am replacing my old PC with my dad's 3-yr old 'hand-me-down' PC running WinXP Pro (P4 2.8GHz, 1GB RAM, 80GB HDD). I plan to remove many of his apps (those I don't need) and add the ones I use for school, music, etc. Before doing this, I have a couple of questions:

1. Would it be a good idea to format the drive and reinstall Windows at this time? I do have my dad's WinXP Pro (SP1) CD. The only disadvantage that I can see to doing this is that I would have to spend a lot of time bringing Windows up-to-date.
   
   
2. Since I will have to reinstall all of my apps (now on my old PC) onto my 'new' PC, is there any convenient way (program?) to save the preferences of those apps to save me the effort of having to set them up to my liking again?

 

Regarding the SP2 updates,you can get those on cd also.
You only pay for shipping.It was something like $3.50 for me.

http://www.microsoft.com/windowsxp/sp2/default.mspx

 

I would do a format. As for updates you could create a custom xp cd with sp2 and ryanvm's update pack.

 

Yep, I would say best to reformat and install everything clean again, including all your apps. Unfortunately, it takes some time, and you'll have to reconfigure everything, but in the end, it's worth it and saves you a lot of possible pain...

 

Would you please explain the idea behind ryanvm's update pack (and how it is used)?

 

See here:

and another benefit is it saves you time if you frequently use the CD or have lots of computers. You wont have to download/run the updates each time.

An alternative to using an update pack is to run AutoPatcher after installing Windows and SP2.