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what does it say for &quot;dependencies&quot; for this service?
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what does it say for "dependencies" for this service?

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Dependancies are pretty standard-<br />
IPSEC driver<br />
RPC<br />
TCPIP driver
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Dependancies are pretty standard-
IPSEC driver
RPC
TCPIP driver

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It looks like it could be a MS update as suspected. DNS ports are blocked for spoofing and it can effect serveral services..<br />
<a href="http://blogs.technet.com/sbs/archive/2008/07/17/some-services-may-fail-to-start-or-may-not-work-properly-after-installing-ms08-037-951746-and-951748.aspx" rel="ugc">http://blogs.technet.com/sbs/archive/2008/07/17/some-services-may-fail-to-start-or-may-not-work-properly-after-installing-ms08-037-951746-and-951748.aspx</a>
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It looks like it could be a MS update as suspected. DNS ports are blocked for spoofing and it can effect serveral services..
http://blogs.technet.com/sbs/archive/2008/07/17/some-services-may-fail-to-start-or-may-not-work-properly-after-installing-ms08-037-951746-and-951748.aspx [http://blogs.technet.com/sbs/archive/2008/07/17/some-services-may-fail-to-start-or-may-not-work-properly-after-installing-ms08-037-951746-and-951748.aspx]

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Did you try removing the update?
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We are currently suffering an IPSEC service failure accross multiple SBS 2003 servers- It started with my own server at home (Yes I'm sad) after a re-boot all internet and logon fails. This has started to be a trend across other SBS servers I maintain, currently its now three and I'm sure it will happen again to others. I looks like another service is grabbing port 500. <br />
<br />
Notes - <br />
1. &nbsp;A re-boot fixes the issue. A manual restart of the service does not work, re-booting is the only way to get it going.<br />
Could it be another service starting before IPSEC?<br />
2. We have 10+ SBS SERVER NETWORKS.<br />
We have not installed any common app across servers and I suspect MS updates (Not for the first time I might add)<br />
3. The service is in &quot;Blocked mode&quot;<br />

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We are currently suffering an IPSEC service failure accross multiple SBS 2003 servers- It started with my own server at home (Yes I'm sad) after a re-boot all internet and logon fails. This has started to be a trend across other SBS servers I maintain, currently its now three and I'm sure it will happen again to others. I looks like another service is grabbing port 500. 

Notes - 
1.  A re-boot fixes the issue. A manual restart of the service does not work, re-booting is the only way to get it going.
Could it be another service starting before IPSEC?
2. We have 10+ SBS SERVER NETWORKS.
We have not installed any common app across servers and I suspect MS updates (Not for the first time I might add)
3. The service is in "Blocked mode"


IPSEC Service failure

Small Business Server (SBS) is a line of server operating systems targeted at small businesses by bundling the operating system with a number of other Microsoft products that would normally need to be purchased or licensed separately. The most notable inclusions are Exchange, SQL Server, SharePoint and ISA/TMG (Microsoft's firewall and proxy server).

Internet Protocol Security (IPsec) is a protocol suite for secure Internet Protocol (IP) communications by authenticating and encrypting each IP packet of a communication session. IPsec includes protocols for establishing mutual authentication between agents at the beginning of the session and negotiation of cryptographic keys to be used during the session. IPsec can be used in protecting data flows between a pair of hosts (host-to-host), between a pair of security gateways (network-to-network), or between a security gateway and a host (network-to-host). IPsec is an end-to-end security scheme operating in the Internet Layer of the Internet Protocol Suite.