do I really need to update service pack for hoster 4.0

[ddouglass]

Billyo, 3.4 is not the same as 4.0. It is the same as 3.321 which is better than what you are currently running. It has some fixes in it for zip file problems. 3.4 does not use any of the 4.0 upgrades/addition items. The only difference between 3.4 and 3.321 is that 3.4 is using the 4.0 registration code.
And if I am interpreting all of your posts of late correctly, did you try to go from SP1 to SP3? If so that is probably why it crashed. You would have been missing a whole bunch of updates in between.