Virtual PC KB 958559 Install Fails - Error Code 0x8004a029

The KB update fails during the update at the 96% complete point (after it reboots) every time. (running Win 7 Enterprise 64-bit on brand new DellLatitude E6510, with i7 processor )

I installed XP Mode first as MS website states, then tried 2nd step to install KB958559 but it fails.

Removed my VMWare workstation and tried to do an install, and tried multiple other suggestions in other posts , to no avail.

Here's the point in the CBS log where it fails:

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2011-01-05 13:35:25, Info                  CSI    000000e3 Begin executing advanced installer phase 38 (0x00000026) index 585 (0x0000000000000249) (sequence 624)
    Old component: [l:0]""
    New component: [ml:316{158},l:314{157}]"Microsoft-Windows-VirtualPC-VMNet, Culture=neutral, Version=7.1.7600.16393, PublicKeyToken=31bf3856ad364e35, ProcessorArchitecture=amd64, versionScope=NonSxS"
    Install mode: install
    Installer ID: {81a34a10-4256-436a-89d6-794b97ca407c}
    Installer name: [15]"Generic Command"
2011-01-05 13:35:25, Info                  CSI    000000e4 Performing 1 operations; 1 are not lock/unlock and follow:
  LockComponentPath (10): flags: 0 comp: {l:16 b:697ba35107adcb01490000008c047405} pathid: {l:16 b:697ba35107adcb014a0000008c047405} path: [l:224{112}]"\SystemRoot\WinSxS\amd64_microsoft-windows-virtualpc-vmnet_31bf3856ad364e35_7.1.7600.16393_none_4c32a731b4a8d866" pid: 48c starttime: 129387260837504338 (0x01cbad0738ae2552)
2011-01-05 13:35:25, Info                  CSI    000000e5 Calling generic command executable (sequence 2): [30]"C:\Windows\System32\netcfg.exe"
    CmdLine: [52]""C:\Windows\System32\netcfg.exe" -e -c s -i vpcnfltr"
2011-01-05 13:35:26, Info                  CSI    000000e6 Performing 1 operations; 1 are not lock/unlock and follow:
  LockComponentPath (10): flags: 0 comp: {l:16 b:9705eb5107adcb014b0000008c047405} pathid: {l:16 b:9705eb5107adcb014c0000008c047405} path: [l:234{117}]"\SystemRoot\WinSxS\x86_microsoft.windows.s..ation.badcomponents_31bf3856ad364e35_6.1.7600.16385_none_3868158f24725705" pid: 48c starttime: 129387260837504338 (0x01cbad0738ae2552)
2011-01-05 13:35:26, Info                  CSI    000000e7 Creating NT transaction (seq 1), objectname [6]"(null)"
2011-01-05 13:35:26, Info                  CSI    000000e8 Created NT transaction (seq 1) result 0x00000000, handle @0x3d8
2011-01-05 13:35:26, Info                  CBS    Progress: UI message updated. Operation type: Update. Stage: 1 out of 1. Percent progress: 96.
2011-01-05 13:35:26, Info                  CSI    000000e9@2011/1/5:18:35:26.670 CSI perf trace:
CSIPERF:TXCOMMIT;961775
2011-01-05 13:35:26, Error                 CSI    000000ea (F) Done with generic command 2; CreateProcess returned 0, CPAW returned S_OK
    Process exit code 41001 (0x0000a029) resulted in success? FALSE
    Process output: [l:73 [73]"Trying to install vpcnfltr ...




..failed. Error code: 0x8004a029.




"][gle=0x80004005]
2011-01-05 13:35:26, Info                  CSI    000000eb@2011/1/5:18:35:26.670 CSI Advanced installer perf trace:
CSIPERF:AIDONE;{81a34a10-4256-436a-89d6-794b97ca407c};Microsoft-Windows-VirtualPC-VMNet, Version = 7.1.7600.16393, pA = PROCESSOR_ARCHITECTURE_AMD64 (9), Culture neutral, VersionScope = 1 nonSxS, PublicKeyToken = {l:8 b:31bf3856ad364e35}, Type neutral, TypeName neutral, PublicKey neutral;1749448
2011-01-05 13:35:26, Error      [0x018007] CSI    000000ec (F) Failed execution of queue item Installer: Generic Command ({81a34a10-4256-436a-89d6-794b97ca407c}) with HRESULT HRESULT_FROM_WIN32(14109).  Failure will not be ignored: A rollback will be initiated after all the operations in the installer queue are completed; installer is reliable (2)[gle=0x80004005]
2011-01-05 13:35:26, Info                  CSI    000000ed End executing advanced installer (sequence 624)
    Completion status: HRESULT_FROM_WIN32(ERROR_ADVANCED_INSTALLER_FAILED)

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