You may like to first refer to an earlier thread which basically states this>
"KB974417 will not install":
http://www.experts-exchange.com/OS/Microsoft_Operating_Systems/Windows/XP/Q_25601389.htmlFrom which you'll find this link>
"KB974417 install fails – working solution":
http://www.geeklab.info/2010/03/kb974417-install-fails/<quote>
When running NDP20SP2-KB974417-x86.exe,
all files are extracted to c:\[random-hex-string].
Go there, using explorer
Doubleclick the .msp file to install
Reboot your computer
Wait for WAU to synchronise with the WSUS server.
When it asks to install “the update”, allow it.
Windows Update will detect the update is already deployed in a second and remove the yellow icon from the taskbar.
The computer will disappear from the “updates needed” reports in 5 minutes to an hour.
<unquote>
Naturally it will be wise to read all the comments.