I heard you can repair by
1. Boot from your Windows XP CD or DVD and start the recovery console
Once you are in the Repair Screen..
2. Type this command: CHDIR $NtUninstallKB977165$\spuninst
3. Type this command: BATCH spuninst.txt
4. Type this command: systemroot
5. When complete, type this command: exit
what sucks, is when you have that problem. but the update screwed your system so hard, that you cant boot from disk.. theres alot of people including myself who have that problem.