No it's not right . It's advisable to download and install all "high priority" updates , but , as you've found to your cost , an "informed" decision has to be made on the "optional" ones. I've refused quite a few optional updates as I've decided/known they're not required , eg driver update for C-Media AC97 Audio Device. Once that decisions made i then choose the option for the update not to be shown again.

In the case of SP1 , it's strongly recommended that "windows update" is used to install and download this as , and i quote , "Windows Update will recognize PCs with known problematic drivers and postpone downloading Windows Vista SP1 until the PC has updated drivers or other applicable updates. Using Windows Update will help ensure you have the most trouble-free update experience possible".

If , as Dwarf has suggested , you choose to install Windows Vista SP1 via the standalone installer available on the Microsoft Download Center, Microsoft advises that you first visit Windows Update and install all optional drivers. Read Knowledge Base Articles 948187 and 948343 for more information.

Things you need to know before downloading SP1

Unfortunately this information comes to late to prevent your problems but as I've said i strongly advise you use the option for automatic updates.