The PC in question is running Windows 7 32-bit. The client desires to run an application in XP Mode via Virtual PC. I checked the hardware requirements, and made sure to enable Virtualization in the BIOS.
When I run Update for Windows (KB958559), I am prompted to restart Windows (pretty typical for a Windows Update). Upon reboot, the update gets to 98% applying itself, when it fails, and uninstalls itself.
FYI, I ran all other pending Windows Updates, except Office 2010 SP2.
This Update for Windows (KB958559) is itself Virtual PC, so without it I cannot run XP Mode in Windows 7. I did a bit of research on the web, and was unable to resolve this.
Thanks to all for your help in advance.