Re: BIOS updates
That is the providence of the manufacturer of your motherboard. So whoever made your motherboard, go to their site and get their BIOS update utility. For new boards, it will likely run form Windows, for older ones, it will require you make a DOS boot floppy.
Re: Service Pack 2
Yes MS will give it to you (at no charge) and you should get it without delay. Simply run Windows Update and it will proceede to get you to the latest updated version, which included SP2. SP2 has a great many enhancements, including to security, you want it for sure.
Re: Resizing drives
There's no MS support for this because it can cause data loss. However Partition Magic, from Powerquest, will do this.