os upgrade questions

The backroom system at one of our stores was still on Windows 98. I wanted to upgrade to to XP sp2. I installed the upgrade but when the system booted up the sql server would not connect. It said that it was not a installed service. After many new grey hairs I was able to unistall the XP and get the system up and running with only 15 minutes to spare before the store opened. Do I need to reinstall the server inorder to do this upgrade? Could someone please give me some assistance on this? I am using the sql version that came with the retail management software.

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Larry
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