Why when installing Security Update for SQL Server 2005 SP2 (KB948109) does it fail to install and report error code 0x7362?

When using Microsoft Update I attempt to install the security update KB948109 for SQL 2005 and the update hangs for 3-5 minutes before finally returning an error message that it was unable to install the patch. When I review my update history and select the status of the update it tells me that the installation failed with error code 0x7362.

Researching this I found a few articles that pointed to the user account that the SQL service runs under needs to be an administrator. I went in to Manage my computer, added the SQL Service account to the Local Administrators group, restarted the computer, and then attempted the install again. The same error occurred. I am at a loss for why this is failing (all other updates have been installed successfully).
masonpud3Asked:
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masonpud3Author Commented:
I have solved my issue. The hotfix was attempting to find distmdl.ldf on one drive, but since we store our log files on a seperate drive than the mdf files it was unable to find it. I just copied over the ldf from the c:\ to the e:\, ran the hotfix, and then moved the log file back. The hotfix was able to install just fine by using this workaround.
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QPRCommented:
SQL Express?
http://blogs.devbuzz.com/blogs/derek/archive/2008/07/22/sql-server-2005-service-pack-2-kb948109-error.aspx
this post seems to think it requires a reinstall - eek!
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jmoss111Commented:
What OS you using?
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jmoss111Commented:
QPR,

The post at the link says when SQL Server and SQL Express installed.
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QPRCommented:
The dangers of skim reading!

Not that difficult to have both installed if you install Visual Studio and don't remember to unselect SQL from the install components.
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masonpud3Author Commented:
SQL Express is not installed on either of the machines that I am having the issue on (both machines are same in terms of specs, but just provide different DB's for different applications).

It is a Windows Server 2003 Enterprise R2 install.
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