I am having the above problem (others seems to have reported similar
issues). The downloads seem to work fine but the system hangs when the
installation box appears. I include below a part of the WindowsUpdate.log
file, starting from where the error seems to appear. Similar error entries
appear up to the end of the file.

Any help would be appreciated.

TIA,
-GHB

#### Exerpt of WindowsUpdate.log file ######
2006-06-23 19:34:04 1280 394 DnldMgr ***********  DnldMgr: New download job
[UpdateId = {F520E83B-36AF-4BF0-B3B5-53A36CCD8472}.100]  ***********
2006-06-23 19:34:04 1280 394 DnldMgr   * Queueing update for download
handler request generation.
2006-06-23 19:34:04 1280 394 DnldMgr Generating download request for update
{F520E83B-36AF-4BF0-B3B5-53A36CCD8472}.100
2006-06-23 19:35:35 1280 394 DnldMgr FATAL: BITS service was not fixed up
and thus CCI was not reattempted. (hr = 80080005)
2006-06-23 19:35:35 1280 394 DnldMgr FATAL: Failed to connect to the BITS
service; unable to start new downloads or interact with existing download
jobs. (hr = 80080005)
2006-06-23 19:35:35 1280 394 DnldMgr FATAL:
DM:CAgentDownloadManager::GetDownloadDataAndHandler: GetBitsManager failed
with 0x80246008.
2006-06-23 19:35:35 1280 394 DnldMgr FATAL:
DM:CAgentDownloadManager::GenerateAllDownloadRequests:
GetDownloadDataAndHandler failed with 0x80246008.
2006-06-23 19:35:35 1280 394 DnldMgr Error 0x80246008 occurred while
downloading update; notifying dependent calls.
2006-06-23 19:35:35 1280 394 DnldMgr WARNING: Extended error for reported
error 80246008 = 80080005
2006-06-23 19:35:35 1280 394 DnldMgr WARNING: Extended error for reported
error 80246008 = 80080005

#### Similar test repeats to end of file