Windows Update fails to install, KB898461

Oh where to begin. Have this computer that will not installed Windows Update KB898461. The computer has XP Home SP1. I have tried the update through the Windows Update website and from a downloaded local installer, each of them comes back with what appears to be the same issue. It looks like the update is being cancelled automatically.

I have tried all of the recommeded solutions from the Microsoft KB and most of the reliable sources I could find including articles on EE. Renamed the %systemroot%\SoftwareDistribution folder, cleared all temp folders including internet files, and checked the user premissions.

Here are some links to the errors that I am getting...
http://i256.photobucket.com/albums/hh174/accrain/failupdate1.jpg

After I click on "Check Your Update History". Notice that it says that the update has been cancelled, not failed.
http://i256.photobucket.com/albums/hh174/accrain/failupdate2.jpg

When I try to install using to downloaded installer for KB898461
http://i256.photobucket.com/albums/hh174/accrain/LocalWindowsUpdate1.jpg

Also says that the update has been cancelled.
http://i256.photobucket.com/albums/hh174/accrain/LocalWindowsUpdate2.jpg

I have also tried to use the local installer in safemode, which gave me the same issue. If one of you geniuses out there has a solutions that doesn't involve reformatting the PC, I think I will be able to regain my sanity, partially atleast. Thanks.
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accrainAsked:
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Delphineous SilverwingConnect With a Mentor Good Ol' GeekCommented:
Find The file spupdsvc.exe in your c:\windows\system32 and rename it to spupdsvc.old and try the install again.
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Alan Huseyin KayahanConnect With a Mentor Commented:
 Hi accrain
        I think you have an antivirus (icon looks like avast in right-bottom ). Disable all firewalls/antispams/antiviruses. If doesnt work again, try following

Verify Windows Update Service Settings

    * Click on Start, Run and type the following command in the open box and click OK

      services.msc

    * Find the Automatic Updates service and double-click on it.
    * Click on the Log On Tab and make sure the "Local System Account" is selected as the logon account and the box for "allow service to interact with desktop" is UNCHECKED.
    * Under the Hardware Profile section in the Log On Tab, make sure the service is enabled.
    * On the General Tab, the Startup Type should be Automatic, if not, drop the box down and select Automatic.
    * Under "Service Status" on the General tab, the service should be Started, click the Start button enable it.
    * Repeat the steps above for the service "Background Intelligent Transfer Service (BITS)"

Re-Register Windows Update DLLs

    * Click on Start, Run, and type CMD and click ok
    * In the black command window type the following command and press Enter

      REGSVR32 WUAPI.DLL

    * Wait until you receive the "DllRegisterServer in WUAPI.DLL succeeded" message and click OK
    * Repeat the last two steps above for each of the following commands (I know you already did but please repeat again after above)

      REGSVR32 WUAUENG.DLL
      REGSVR32 WUAUENG1.DLL
      REGSVR32 ATL.DLL
      REGSVR32 WUCLTUI.DLL
      REGSVR32 WUPS.DLL
      REGSVR32 WUPS2.DLL
      REGSVR32 WUWEB.DLL

Remove Corrupted Windows Update Files

    * At the command prompt, type the following command and press Enter

      net stop WuAuServ
    * Still at the command prompt,

      type cd %windir% and press Enter
    * In the opened folder, type the following command and press Enter to rename the SoftwareDistribution Folder

      ren SoftwareDistribution SD_OLD
    * Restart the Windows Update Service by typing the following at the command prompt

      net start WuAuServ

    * type Exit and Press Enter to close the command prompt

Reboot Windows

    * click on Start, Shut Down, and Restart to reboot Windows XP


Regards
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accrainAuthor Commented:
Renaming the spupdsvc file along with disabling the antivirus solved the problem. Simply brilliant, thank you.
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