.NET Framework 2.0 SP2 Corrupt

Have a customer that is having a problem with Outlook. He opens Outlook 2007, it stays open for about a minute and then crashes. After it crashes, this is what is in the event viewer:

Event Type:      Error
Event Source:      Microsoft Office 12
Event Category:      None
Event ID:      5000
Date:            6/10/2010
Time:            6:13:43 PM
User:            N/A
Computer:      DGYDT8G1
Description:
EventType clr20r3, P1 outlook.exe, P2 12.0.6514.5000, P3 4a89dc70, P4 bcmres, P5 3.0.0.0, P6 47880718, P7 710, P8 0, P9 system.io.filenotfoundexception, P10 NIL.

For more information, see Help and Support Center at http://go.microsoft.com/fwlink/events.asp.

EventType clr20r3 appears to be .NET Framework 2.0. Looked back in Event Viewer and notice that after Windows Update the previous evening, there are a bunch of errors related to .NET Framework 2.0 SP2. Here is an example:

Event Type:      Error
Event Source:      MsiInstaller
Event Category:      None
Event ID:      10005
Date:            6/10/2010
Time:            3:03:32 AM
User:            NT AUTHORITY\SYSTEM
Computer:      DGYDT8G1
Description:
Product: Microsoft .NET Framework 2.0 Service Pack 2 -- There is a problem with this Windows Installer package. Please refer to the setup log for more information.

For more information, see Help and Support Center at http://go.microsoft.com/fwlink/events.asp.
Data:
0000: 7b 43 30 39 46 42 33 43   {C09FB3C
0008: 44 2d 33 44 30 43 2d 33   D-3D0C-3
0010: 46 32 44 2d 38 39 39 41   F2D-899A
0018: 2d 36 41 31 44 36 37 46   -6A1D67F
0020: 32 30 37 33 46 7d         2073F}

I have tried to uninstall and reinstall but it will not let me uninstall. I cannot run an install over it.

Tried going to Start->Run->Installer
Right Clicked on .NET 2.0 and hit repair. It failed because the package is corrupt.

Also, tried running a repair following MS KB306160. That gave me a message to run the install using install.exe.

Final thing I tried was uninstalling .NET 3.5 SP1 and then reinstalling because I had found an article that said 2.0 was included in 3.5 and that uninstalling and reinstalling the latest version would also replace the earlier version. Apparently, that was bad info.

At this point I am thinking I will have to uninstall .NET 3.5, 3.0 and then manually remove 2.0. Then install them all again. Is there any other way around doing this?