Hello Mauvern,

Run in safe mode.

Delete Cookies and Temp Files and included all offline cºntent
Empty your IE cache
To run in safe mode.
http://www.computerhope.com/issues/chsafe.htm

Probably by now you see this KB
You cannot install some updates or programs
http://support.microsoft.com/kb/822798

Also you can try Try kb/943144 OR Dial-a-Fix

The links are here

<http://www.microsoft.com/communities/newsgroups/en-us/default.aspx?&lang=en&cr=US&guid=&sloc=en-us&dg=microsoft.public.windowsupdate&p=1&tid=1a44d 843-e3ff-41cd-8797-efb6efd7c460&mid=1a44d843-e3ff-41cd-8797-efb6efd7c460>

Please let us know what fixes the problem or if the problem remains

I hope this post is helpful.
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"Mauvern" wrote:

> I have Windows XP Home O.S set to receive Automatic Updates which should be
> automatically installed. I have found that they will now download without
> problem but will not install either automatically or manually. The
> notification icon inviting installation appears in the taskbar, operates but
> aborts before any update is installed.After several attempts I did manage to
> follow the resolution given by Microsoft,working through the Command Prompt
> etc to re-register the BIT's files and that part of the exercise
> succeeded.The updates would still not install. Using Run and Command Prompt I
> have several times visited Services. The Background Intelligent Tranfer
> Service is not and will not (despite numerous attempts) become enabled,
> either manually or automatically. A small Services window states "could not
> start BITS service on Local Computer. Error 2. The system cannot find the
> file specified". Reference to the BITS properties window shows the file
> concerned to be C:\WINDOWS\system32\svchost.exe-k netsvcs . I followed the
> file path through to system32 and in it found the file "svshost", but this
> just will not open to reveal it's contents. Using the Search facility I was
> unable to trace the file reference given by BITS properties, buit the file
> "svchost" does show "svchost.exe" when the pointer is put over it. Can anyone
> suggest how the file might be opened ? or give any other advice. I do run
> Spybot S+d and have disabled the TeaTimer Resident facility so that does not
> appear to be the answer. I would appreciate any advive, Thanks.