Its interesting that many people have the same issue.
This issue happens because one or more of the files in the MSOCACHE folder
is corrupt. MSOCACHE is a hidden folder created at the root of the C: drive
(sometimes, D:\ or E:\ depending on free space availability). This folder
basically contains the installation files required for Office 2003.
What you need to do is to download LISTOOL.EXE from here:
http://www.microsoft.com/downloads/...A3-695B-42C3-9045-B812BA0FED3E&displaylang=en
Then, doubleclick on this. It will ask you to point to a destination folder
to extract the files. It will extract another file called "listool.exe" into
the destination that you provide.
1) Double click on this listoo.exe.
Select the option "delete and disable LIS". Select "microsoft office edition"
and click on "delete". (In some extreme cases, you may want to disable every
software listed in there and delete them)
2) After this process, doubleclick again on listool.exe.
This time, select "enable LIS"
select "microsoft office edition" and click on "enable".
Now, try installing the update and it should work.
All the best folks !!
Ajith