I had this problem in XP Home. Microsoft Support told me to reinstall XP.
I did. When I installed all the XP updates again, this problem did not
occur. I doubt that was and is the correct solution, but it solved my
problem after wasting hours of my time.
It's not only the right solution, it may be the ONLY solution. The fix
you give is one of several fixes for the recurring update problem, NONE
OF WHICH may work, they didn't for me and haven't for many, many folks.
There's been a great deal of ongoing discussion of this problem in
microsoft.public.windowsupdate which might be better suited to this
topic.
The only way I was able to resolve the problem was to remove XP format
the harddrive and re-install Win2k which was not problem for me as I'd
planned to do so anyway.
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