I have this same problem. This won't help you solve it right now, but I
suggest monitoring this post --->
http://windowshelp.microsoft.com/com...17c8c5&m=1&p=1

"Richard" wrote:

> WU persistently fails to install this automatically downloaded update with
> this error:
>
> Installation Failure: Windows failed to install the following update with
> error 0x80070002: Security Update for Windows Vista (KB935807).
>
> I downloaded the update manually & installed it & it is show installed ok,
> but WU still downloads & tries to install it.
> I tried deleting the C:\Windows\SoftwareDistribution\WuRedir dir & rebooting
> but it still downloads it on reboot.
>
> Any ideas please?
>
>
>