Yep, seen it. I suspect that is the KB976569 update that is causing it -
in my case, KB967569 was put on before KB974417.

This is how I correct the issue:

 * Remove .NET using the cleanup tool, then reboot
 * Install .NET 1.1, update to 1.1 SP1 then apply the KB886903 and
KB953297 updates
 * Install .NET 3.5 SP1, this pulls in 2.0 SP2 and 3.0 SP2 at the same time
 * Install these updates *in this order*:
   KB958481
   KB974417
   KB976569
   KB958483
   KB976570
   KB958484
   KB983707

I have a script that does all that for me in the instances where I need
to do it manually.

Stephen Wimberly wrote:
> On one workstation I did the complete set of instructions, uninstalled
> .Net, stopped the wuauclt service, removed the software distribution
> files, etc etc etc.  Reinstalled .Net from the microsoft download site
> and then it wanted to install kb974417 again, and again failed.  (I
> was working from a kb article but don't have it handy.)
> 
> It's only failing on newly installed workstations.

-- 

Phil Brutsche
[email protected]

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