Yes you should always install the latest service pack.

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A reboot will clear out the plan cache so following the reboot a new plan will need to be created. This may account for the performance degradation you are seeing.

Are you using the Import and Export wizard to do this? If so you can import from Excel or you can create your own SSIS package to do the import...

It just looks like a permissions issue. Does the account you are using have access to E:\MYDB?

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You can't truncate a table that has a foreign key constraint, that is the whole reason for having a constraint. You will need to delete and re-create the constraints so...

I still don't understand why you want to shrink the log file. From what I've read the transaction uses 0.5% of the log so where is the problem? Is this...

The log is growing because it needs to, if you reduce it it will only grow again. The only time I would shrink the log file is if there had...

From what I recall (feel free to correct me anyone) but a truncate will reseed any identity column so you will need to bear this in mind.

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