...After updating to service pack 1 for windows, the trackpad only now works for mouse movements!!...
SP1 "broke" a lot of other things, although I've not heard of it breaking Apple's trackpad drivers. Try reinstalling the Boot Camp Drivers again. Possibly clean reinstall of Windows, then immediately apply SP1, then install the Boot Camp Drivers. That is what I did when I installed Win7 on my MBP.
BTW, the wording of your post is a little confusing with the term "reinstalling bootcamp". I'm refering to installing the Boot Camp drivers, which is when you boot into Windows, then insert the disk that came with your computer to install the Apple supplied drivers for the Apple hardware.