After upgrading my home PC to SP2 I get error code: 0x80070005 when trying Windows Update. It does this when trying to download and install "Windows Updating Software". After looking through several of your articles, I downloaded and ran Filemon and Regmon. I did not see any failure messages but there were several "not found" messages.
Windows Update worked fine with SP1.
Prior to running update, I disabled all McAfee AV and Firewall services as well as ended any tasks in Task Manager (Processes) that were not important.
Can you give some idea as to what I can try next. I am logged on as administrator and this is Windows XP Professional though it is a stand alone PC (i.e., not networked).