Service Pack 2 for Exchange 2003 Fails to install with "A fatal setup error has occured..."

The error message reads "A fatal setup error has occured. Look at C:\Documents and Settings\Administrator\Local Settings\eventlog.txt for more details. Cancelling setup.

Microsoft Update offers no updates for Exchange.  Under system Manager the Server version is clearly Service Pack 1.

EVENTLOG.TXT
[02/26/09,19:08:28] Setup.exe: GetGlobalCustomProperty(B51015E7-26A5-4c8f-B871-26ABA9BEFB65)
[02/26/09,19:08:28] Setup.exe: LoadSetupDatabase()
[02/26/09,19:08:28] Setup.exe: in InternalRegisterSetupService()
[02/26/09,19:08:28] Setup.exe: in InternalRegisterSetupService()
[02/26/09,19:08:28] Setup.exe: IsRunningUnattended
[02/26/09,19:08:28] Setup.exe: AddGlobalCustomProperty
[02/26/09,19:08:28] Setup.exe: IsRunningUnattended
[02/26/09,19:08:28] Setup.exe: inside ISetupManager::LoadHelpManager()
[02/26/09,19:08:28] Setup.exe: in InternalRegisterSetupService()
[02/26/09,19:08:28] Setup.exe: in InternalRegisterSetupService()
[02/26/09,19:08:28] Setup.exe: ISetupManager::LoadCommandLineMgr() completed
[02/26/09,19:08:28] Setup.exe: in InternalRegisterSetupService()
[02/26/09,19:08:28] Setup.exe: ISetupManager::LoadSetupLog() completed
[02/26/09,19:08:28] Setup.exe: ISetupManager::RunIntro() starting
[02/26/09,19:08:28] Setup.exe: inside ISetupManager::LoadDependencyMgr()
[02/26/09,19:08:28] Setup.exe: in InternalRegisterSetupService()
[02/26/09,19:08:28] Setup.exe: inside ISetupManager::LoadCDInfoMgr()
[02/26/09,19:08:28] Setup.exe: GetCustomProperties()
[02/26/09,19:08:28] Setup.exe: get_CustomProperties()
[02/26/09,19:08:28] Setup.exe: in InternalRegisterSetupService()
[02/26/09,19:08:28] Setup.exe: inside ISetupManager::LoadTemplMgr()
[02/26/09,19:08:28] Setup.exe: in InternalRegisterSetupService()
[02/26/09,19:08:28] Setup.exe: inside ISetupManager::LoadDiskInfoMgr()
[02/26/09,19:08:28] Setup.exe: in InternalRegisterSetupService()
[02/26/09,19:08:28] Setup.exe: inside ISetupManager::LoadUIManager()
[02/26/09,19:08:28] Setup.exe: in RegisterSetupService()
[02/26/09,19:08:28] Setup.exe: in InternalRegisterSetupService()
[02/26/09,19:08:28] Setup.exe: GetGlobalCustomProperty({0DC70217-9545-11D2-ACD4-00C04F8EEBA1})
[02/26/09,19:08:29] Setup.exe: IsRunningUnattended
[02/26/09,19:08:29] Setup.exe: GetGlobalCustomProperty({AA62DF98-3F2C-11D3-887B-00C04F8ECDD6})
[02/26/09,19:08:29] Setup.exe: in InternalRegisterSetupService()
[02/26/09,19:08:29] Setup.exe: inside ISetupManager::LoadAccountManager()
[02/26/09,19:08:29] Setup.exe: in InternalRegisterSetupService()
[02/26/09,19:08:29] Setup.exe: inside ISetupManager::LoadValidationManager()
[02/26/09,19:08:29] Setup.exe: in InternalRegisterSetupService()
[02/26/09,19:08:29] Setup.exe: inside ISetupManager::LoadDependencyManagerUI()
[02/26/09,19:08:29] Setup.exe: in InternalRegisterSetupService()
[02/26/09,19:08:29] Setup.exe: inside ISetupManager::LoadServerGroupManager()
[02/26/09,19:08:29] Setup.exe: in InternalRegisterSetupService()
[02/26/09,19:08:29] Setup.exe: inside ISetupManager::LoadChangeFolder()
[02/26/09,19:08:29] Setup.exe: in InternalRegisterSetupService()
[02/26/09,19:08:29] Microsoft Search: Initialize, Search not installed.
[02/26/09,19:08:29] setup.exe: ***ERRORLOG EVENT*** : ModuleID not found in map in GetSetupComponentByModuleID() -- [{DA943894-7A14-4FFF-BBDC-C004FAE2310B}]
[02/26/09,19:08:29] setup.exe: ***ERRORLOG EVENT*** : ModuleID not found in map in GetSetupComponentByModuleID() -- [{94B7AD3E-0B63-42AC-A542-082ED1F78787}]
[02/26/09,19:08:29] setup.exe: ***ERRORLOG EVENT*** : ModuleID not found in map in GetSetupComponentByModuleID() -- [{ECD1A63D-DBAF-442C-BF46-904364A96B00}]
[02/26/09,19:08:29] Setup.exe: inside ISetupManager::LoadActionOverrides()
[02/26/09,19:08:29] setup.exe: ***ERRORLOG EVENT*** : ISetupComponent had an InstallProblem while trying to set install action override
[02/26/09,19:08:30] Dependency Manager: ***ERRORLOG EVENT*** : CDependencyManager::ValidateDependencyStates() : The dependency of Microsoft Exchange Messaging and Collaboration Services on Microsoft Search is not satisfied.
[02/26/09,19:08:30] Dependency Manager: ***ERRORLOG EVENT*** : Component default action settings do not satisfy dependencies. Components are being set to IR_NOTHING.
[02/26/09,19:08:30] setup.exe: ***ERRORLOG EVENT*** : Run() : RunLoadSetup(), an exception has occured.
[02/26/09,19:08:30] Setup.exe: IsRunningUnattended
[02/26/09,19:10:49] Setup.exe: RunUnLoadSetup()
[02/26/09,19:10:49] Setup.exe: UnloadSuiteComponents()