Updates are downloaded but fail to install

This worked builtifuly: (taken from: http://support.microsoft.com/kb/943144 )

Method 1: Register the Wups2.dll file in Windows (I didnt need to try the
method 2)
To register the Wups2.dll file in Windows, follow these steps:
1. Stop the Automatic Updates service. To do this, follow these steps:
a. Click Start, click Run, type cmd, and then click OK.
b. At the command prompt, type the following command, and then press ENTER:
net stop wuauserv

2. Register the Wups2.dll file. To do this, follow these steps:a. At the
command prompt, type the following command, and then press ENTER:
regsvr32 %windir%\system32\wups2.dll
Note For a computer that is running Windows XP Professional x64 Edition,
type the following command, and then press ENTER:
regsvr32 %windir%\syswow64\wups2.dll
(I didnt use this one)

b. Click OK on each verification message that you receive.

3. Start the Automatic Updates service. To do this, type the following
command at the command prompt, and then press ENTER:
net start wuauserv
4. Exit the command prompt. To do this type exit, and then press ENTER.

Than I went to the Windows Update Web Site and installed all 77 updates
gracefully

Hey, that text document did not work for me so i made a batch file that does
the trick. Others may find this useful.

Copy and paste this into notepad, then save as, under the file type drop
down pick all types, and make sure to name it something.bat

@Echo Off
Set key="HKEY_LOCAL_MACHINE\SOFTWARE\Microsoft\Windows
NT\CurrentVersion\Winlogon\Notify\SensLogn"
REG ADD %key% /v Asynchronous /t REG_DWORD /d 1
REG ADD %key% /v Safe /t REG_DWORD /d 1
REG ADD %key% /v MaxWait /t REG_DWORD /d 258
REG ADD %key% /v Impersonate /t REG_DWORD /d 1
REG ADD %key% /v DLLName /d WlNotify.dll
REG ADD %key% /v Lock /d SensLockEvent
REG ADD %key% /v Logon /d SensLogonEvent
REG ADD %key% /v StartShell /d SensStartShellEvent
REG ADD %key% /v PostShell /d SensPostShellEvent
REG ADD %key% /v Disconnect /d SensDisconnectEvent
REG ADD %key% /v Reconnect /d SensReconnectEvent
REG ADD %key% /v Unlock /d SensUnlockEvent
REG ADD %key% /v Logoff /d SensLogoffEvent
REG ADD %key% /v StartScreenSaver /d SensStartScreenSaverEvent
REG ADD %key% /v StopScreenSaver /d SensStopScreenSaverEvent
REG ADD %key% /v Startup /d SensStartupEvent
REG ADD %key% /v Shutdown /d SensShutdownEvent

Thank you! After days of trying every KB I can find, this worked. Note to
others, make sure that the "Set Key" is one line in your bat file.