I've had exactly the same problem on 3 machines running Windows 7 on bare metal hardware, and also on a Win7 virtual machine. When I go to install this update:



I get this result every time:



On two of the PC's and the VM I have been able to resolve the issue with this fix (although it says it is for Vista it works well on Win7)

http://support.microsoft.com/kb/971058

However, on the 3rd PC, running that fix hasn't helped I would have put it down to being a dodgy update, yet I cannot find any mention of anyone else having the same issue however hard I look Any ideas anyone?