Those of you losing some functionality after the SP1 stand-alone are the reason Win Update is not offering SP1 to you. There are obviously some (or many) driver issues on your computers with SP1. I admire your courage in installing anyway...but you had to expect some trouble.
I checked windows update yesterday, and Microsoft provided an optional update for Mobile Intel GM965 X3100 chipset, which updates the display driver to the latest version. After restart and check the Microsoft Update again, I got Vista SP1. This seems to be the solution to this problem.