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26 Mar 2012  

XP / Win7 x64 Pro

It might be fixed for now, but the root issue here is your disabling of windows updates. That's not wise to do in any situation, unless the computer will never be connected to a network. If it were me, I would do a complete fresh install on the machine with all available windows updates. I don't think you've seen the last of your problems with this, particularly since you still cannot install SP1.
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