>There are lots of hits if you Google [KB974417], e.g.
http://www.geeklab.info/2010/03/kb974417-install-fails/This is the worst update I have ever seen. It has been causing us problem since the last 4 days. I tried the solution as you mentioned. But, it keeps coming back. I also do not have WSUS. But, I did all the steps as explained in there. It didn't change anything. This update icon keeps coming back and will always be executed for all upcoming updates, such as the one we just had tonight.