Suggestion 1:
Rename the Wininit.ini file:
1. Click Start, point to Search, and then click Files or Folders.
2. In the Named box, type "wininit.ini"
3. In the Look in box, click Local Hard Drives.
4. Click Search Now.
5. Right-click the "Wininit.ini" file in the list of found items, and
then click Rename.
6. Type "Wininit.old", and then press ENTER.
7. Close the Search Results window.
8. Restart your computer.
9. Reinstall your program or update.
Suggestion 2:
Run ScanReg to scan and repair registry
1.
Start > Run
2.
Type "Scanreg /fix"
3.
Press OK
The Windows Registry Checker will appear
4.
Click OK
System will reboot
5.
Try Windows Update again.
In addition this error can be caused
by Norton.
Here's the link to the problem.
Error: "Windows could not upgrade the file %1
from %2" after running LiveUpdate
