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my computer has been running flat out for nearly 3 years now, it's had every update put on it including SP2 all installed after the fact and it's never slowed down on me at all.
When you reformatted, did you erase all the previous partitions you had before? Seems like you might have some old OS files causing a problem. I run Windows Updates on every computer in my company.
You are supposed to do things in the right order, which is Anti-virus software after drivers, preferably from a CD so when you connect to the Internet, you don't catch a virus, like you already might have.