Fixing Windows Update and Installation Problems in Windows XP SP2

There have been numerous people (including myself) who seem to be having the following problems with Windows XP. This bug seems to make Windows Update get stuck in the "Initializing Installation..." phase of its installs. Windows Installer packages also fail to complete installs successfully.

Affected Operating Systems
Windows XP Professional SP2 (service pack 2)
Other Windows XP versions? (unconfirmed)

Software Installed on Affected Machine
Norton Internet Security 2005 (up-to-date using LiveUpdate to Aug. 2005)
Microsoft AntiSpyware Beta (up-to-date to Aug. 2005)
All updates as suggested by Windows Update to Aug. 2005

Symptoms
The following symptoms have been observed in an affected system. None of the following symptoms resulted in a complete freeze. It was always still possible to work with other applications.

• MSI packages fail to complete installs. Installation starts successfully, but halts without error at a non-determinate point in time.
• Windows Installer fails to complete installs. Installation freezes without error. Windows Installer does not shut down, but does not proceed any further than a particular point in the installation. Symptoms observed in both Windows Installer 3 and Windows Installer 3.1.
  
• Intermittent "access denied" errors when trying to access Windows utilities that should be available to an Administrator type account.
• System Restore tab missing from My Computer -> Properties window when logged in as an Administrator type account.
• Windows Update hangs indefinately on the "Initializing Installation..." phase of update procedure. No error provided.
• Generally poor system performance when attempting to access Windows control panels and other system tools.

Predicted Cause(s)

• Corrupted elements in Windows File Protection (WFP) structures.
• Corrupted main system files usually under the protection of Windows File Protection.
• Corrupted files in the C:\Windows\system32\dllCache folder.
• Poor quality and poorly tested updates issued by the Windows Update utility that incorrectly patch main system files.
• Norton Internet Security 2005 incorrectly handling protection of key system resources and damaging critical files.

Bug Identification
If your system is exhibiting any of the behaviors listed above in Symptoms, your system may be affected. A simple check for this problem can be completed as follows.

• Right click on My Computer, then select Properties.
• If your windows account is an Administrator account there should be a tab in the Properties window called System Restore.
• If the System Restore tab is missing, your system may be experiencing the bug under discussion.

Resolution
The following steps can be followed to repair the system to get Windows Update and installations working again.

1. Click Start -> Run.
2. Run sfc /scannow. This will start the System File Checker (sfc.exe) to verify the integrity of main system files.
3. If sfc requests insertion of the Windows XP cd-rom, insert your Windows XP cd and click Retry.
4. sfc should complete its verification of the system files and close.
5. Restart the system.
6. Disable System Restore in My Computer -> Properties. Warning: This will delete all your previous restore points.

Your system should funtion normally now. Try running an installer, or preferably, a Windows Update package to verify correct functionality.

Notes
Once the fix is completed, it is not known whether turning System Restore back on will cause the problems to return.

Other Resources for Similar Bugs (in case the above didn't help)
http://support.microsoft.com/kb/898628
http://support.microsoft.com/kb/885894

Disclaimer
This is not an official Microsoft bug report, nor am I attempting to affiliate myself with Microsoft in any way. The Windows XP operating system, all its variants, and all its included utilities are the property of the Microsoft Corporation. It is Microsoft's duty to provide official bug reports and product updates for the Windows XP operating system, as such, I cannot and will not be held responsible for any damages or losses that you incur by following my repair suggestions.