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sbs 2011 service pack 1 completion issue

I'm unable to install Service Pack 1 on a SBS2011 server that was migrated from SBS2003.

It began running extremely slowly after running Windows Update manually.  WSUS was not functioning, so I manually ran Windows Update.  The server hung on kb976932, so I restarted after checking for system/disk activity.

I then downloaded the Service Pack manually and attempted an install by running the executable as an Administrator.

The process ran last night from 5:18pm to 8:34am this morning when I selected the cancel option, realizing cancel would only take effect after the current process finished.  The system remained in the 'cancelling' state for 4 hours.  spinstall, TrustedInstaller and windows6.1-KB976932-X64 showed very little system activity, so I manually terminated them and restarted the server.

I disconnected the UPS connection to the server as recommended in the Deployment Guide.  I also ran a 'checkdsk' and 'sfc /scannow' for verification (both clean) and SEP 12 services were disabled before beginning the installation again.  

This time, the installation appears to be running and I see system activity from TrustedInstaller and disk activity (visually), but when I run Resource Monitor to monitor the activity from the processes, it hangs, which it didn't do previously.

I've looked in C:\Windows\WindowsUpdate.log (nothing appears related to the SP1 update) and C:\Windows\Logs\CBS\CBS.log which is difficult to decipher.  CBS.log was only updating for the first 30 minutes of the installation, although there is activity from the system and disks.

The system seems to be running faster after the last reboot, but I'm afraid it will begin to slow down again as it did prevously, which will also impact the SP1 installation.

Without Resource Monitor, I'm unable to tell if SP1 is actually installing this time.  Are there any other processes or logs I can monitor?

Any advice would be greatly appreciated!
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Perarduaadastra
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I'm not sure what else you can do without installing additional software such as Process Monitor and Process Explorer from Sysinternals.

However, have you disabled any AV software that may be running on the server? If you are, and can disable it, then do so and try again. If it still doesn't make a difference then try uninstalling it altogether and then rerunning the SP1 install.
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Update:  Resource Manager is now working.  In Overview, I've selected TrustedInstaller, System, spinstall and windows6.1-KB976932-X64.  I can see the system accessing several files, currently license.rtf.  It's going on 2 hours for this iteration.  Microsoft states the install 'might take an hour or more'.  

This server is a Dell PET620 with Xeon E5-2640 @ 2GHz & 32GB of RAM.  How long should this installation really take?
Microsoft are right to be a bit cagey about how long such things take. The last one I did was on an old Dell R300 with a 2.33GHz L5410 CPU and 8GB of RAM, and if I remember correctly it took a little over an hour.

However, that particular server only does very light duty for a handful of users, so perhaps had a lot more spare CPU cycles to devote to the SP1 installation than your server does.

Nonetheless, two hours and counting for a newer and more powerful server with four times the RAM of that old R300 does seem unusually long. Have you disabled any installed AV software?
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Thanks for the info Perarduaadastra.  I did disable AV before running the update.  I'm currently on a support call with Dell.  Hopefully they can work some magic!
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Didn't get very far with Dell.  We were able to get the system to a point where it would shutdown, but now stuck at 'Preparing to configure Windows.  Do not turn off your computer.'

There is very little activity from the disks, but I'm still able to ping and access the server shares.  I'm afraid to reset the server as I'm guessing it could corrupt the OS.

Any advice?
What did you and Dell do to move the installation on as far as you have? Did they agree that something was amiss?

The "Preparing to configure Windows" stage can take a long time, but again just how long is highly variable. Resetting the server is to be avoided if at all possible; your surmise about OS corruption is correct, and I suspect that you really don't want to be adding a restore from backup to your to-do list...

However, by the time you read this it may all have completed successfully anyway!
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Resolved the issue with Dell's assistance.