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SQL 2005 SP1 is required

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My client is still using SL7.0 FP1 with SQL Server 2008 R2. Last March we got the above error when trying create a new application database in Database Maintenance. We applied the available hotfix  (HF970678) and  were able to create the database.
Now eleven months later, we're getting the same message when we try to create yet another application database. I've verified that the hotfix is still there and (just to be sure) reapplied it to no avail.
We are planning an upgrade in the near future, but does anyone have any suggestions for the meantime? At this point, I'm considering applying SP4.but would like some assurance that the time would be well spent.
Thanks!

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