http://support.microsoft.com/?kbid=836949
You receive error message 0x80070003 when you try to update Windows from the Windows
Update Web site
http://www.jsiinc.com/SUBQ/tip8000/rh8024.htm
When you attempt to update Windows XP from the Windows Update Web site, you receive
error 0x80070003?
0x80070003 = COR_E_DIRECTORYNOTFOUND
The specified path couldn't be found - ALLUSERSPROFILE Microsoft network dir doesn’t
exist
Make sure the following folders exist under %windir%\SoftwareDistribution\
Note: (%windir% = C:\Windows)
DataStore\
Download\
EventCache\
SelfUpdate\
WebSetup\
WuRedir\
You may need to clear the contents of the Datastore and Download folders.
http://v5.windowsupdate.microsoft.com/v5consumer/showarticle.aspx?articleid=11&ln=en
“
If the above doesn’t assist, suggestion by Torgeir Bakken (MVP)
If the directory "%ALLUSERSPROFILE%\Application Data\Microsoft\Network"
does not exist, you will get this error.
%ALLUSERSPROFILE% is normally "C:\Documents and Settings\All Users"
To verify existence/create this folder, you can do like this:
Press Start/Run, and fill in this:
"%ALLUSERSPROFILE%\Application Data\Microsoft"
Press OK, and the Microsoft folder will open.
If no Network folder is found there, create it (File\New --> Folder).
If none of the above help, perhaps post to or search the Windows Update newsgroup:
news://msnews.microsoft.com/microsoft.public.windowsupdate
or
http://www.microsoft.com/windowsxp/...=microsoft.public.windowsupdate&lang=en&cr=US
