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Are you seeing any particular error message when the SP1 install fails? You likely need to run the System Update Readiness Tool. What is the System Update Readiness Tool?
You will also need to disable any antivirus program in the msconfig utility's Startup and Services tabs both. When going into the Services tab first check off the "Hide all Microsoft services" box to avoid disabling any background services. But av and other security programs can interfere with the installation.
Last edited by Brink; 05 Jun 2012 at 00:04. Reason: added quote