the problem was solved on my XP system with the follows; (From MS)
1. Go to the Add/Remove Program files and remove KB967715.(if no remove option then remove it from uninstall folder "$NtUninstallKB967715$")
Go to the following location: c:\windows\$NtUninstallKB967715$
2. Download KB950582 and save it to the Desktop
(
http://www.microsoft.com/downloads/details.aspx?FamilyId=CC4FB38C-579B-40F7-89C4-1721D7B8DAA5&displaylang=en )
(we have the same update kb950582 for vista as well, make sure the update is downloaded from the link provided)
3. Rename "SoftwareDistribution" folder.
(Open My Computer page > double-click Local Disk (C:) drive > double-click Windows folder and right-click software distribution folder and rename it to SDold.)
NOTE: If fail to rename the catroot2 folder in normal mode, try to restart the pc in safe mode and rename it there.
a) Click Start, click Turn Off Computer, and then click Restart.
b) After the computer completes the Power On Self Test (POST), press F8, and then click Safe mode (with Networking).
NOTE: If you have difficulty getting to the Safe mode menu command, press F8 repeatedly after you turn on the computer.
c) Login the system by your account.
Note: In Safe Mode, your system display and desktop will look and perform differently than in Normal Mode. This is only temporary.
a) Click Start, click Turn Off Computer, and then click Restart.
b) After the computer completes the Power On Self Test (POST), press F8, and then click Safe mode (with Networking).
NOTE: If you have difficulty getting to the Safe mode menu command, press F8 repeatedly after you turn on the computer.
c) Login the system by your account.
Note: In Safe Mode, your system display and desktop will look and perform differently than in Normal Mode. This is only temporary.
4. Restart computer.
5. Double click the downloaded file KB950582 to install it.
6. Restart computer.
7. This should solve the problem.