See if this article helps narrow the problem down a bit:
http://support.microsoft.com/kb/259420/en-us
OFF2000: How to Use a Log File to Troubleshoot SR-1 Update Problems
Hal

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Hal Hostetler, CPBE -- hhh@kvoa.com
Senior Engineer/MIS -- MS MVP-Print/Imaging -- WA7BGX
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> Computer tells me to install SR-1 but having tried twice I get error messages:
>
[quoted text clipped - 4 lines]
> I can't find any explanation, how do I get this update to work and why do I
> need it? (Not technically minded) Cheers.