Solved!
I got the solution from Microsoft Help. They got me to download a diagnosic tool, run it and then send them the report. The solution I got is as follows:
This issue can be caused by a damaged .NET Framework component. In order to resolve the issue, we have to remove previous versions of .NET Framework and reinstall .NET Framework 3.5, which contains many new features building incrementally upon .NET Framework 2.0 and 3.0, and includes .NET Framework 2.0 service pack 1 and .NET Framework 3.0 service pack 1. Based on its current status, I suggest trying the following troubleshooting steps.
Step 1: Remove the corrupt .NET Framework components
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1. Please download the dotnetfx_cleanup_tool.zip from the following link:
http://cid-27e6a35d1a492af7.skydrive...eanup_tool.zip
Please Note: The third-party product discussed here is manufactured by a company that is independent of Microsoft. We make no warranty, implied or otherwise, regarding this product's performance or reliability.
2. Unzip the zipped file, and you will get the tool "cleanup_tool.exe".
3. Please double click it and choose Yes to reply.
4. At "Product to cleanup", Choose .NET Framework - All Versions
5. Then Click Cleanup Now
Step 2: Manually downloading and installing Microsoft .NET Framework 3.5
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Please note: The size of Microsoft .NET Framework 3.5 and .NET Framework 3.5 Service Pack 1 is a little big. Your patience to download the update is much appreciated.
1. Click the following link:
Microsoft .NET Framework 3.5 and .NET Framework 3.5 Service Pack 1
http://download.microsoft.com/downlo...dotnetfx35.exe
Microsoft .NET Framework 3.5 Service Pack 1 and .NET Framework 2.0 Service Pack 2 Security Update for Windows 2000, Windows Server 2003, and Windows XP (KB979909)
http://www.microsoft.com/downloads/d...27bad#filelist
Note: Please download the file "NDP20SP2-KB979909-x86.exe"
Microsoft .NET Framework 3.5 Service Pack 1 Update for Windows Server 2003 and Windows XP (KB982168)
http://www.microsoft.com/downloads/d...58f66#filelist
Note: Please download the file "NDP30SP2-KB982168-x86.exe"
2. When the file download window appears, please click "Save", and follow the directions to save it on the Desktop. After downloading the Microsoft .NET Framework 3.5 setup file on your Desktop, double-click to manually install it.
However, if any error is encountered when installing .NET Framework 3.5, please capture a screenshot of the error message:
How to capture a Screenshot:
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1. When the error appears, please press the "Print Screen" key (PrtScn) on your keyboard.
2. Click "Start", click "Run", type MSPAINT, and click "OK".
3. In Paint, click "Paste" under the "Edit" Menu, click "Save" under the "File" menu, type a file name for the screenshot, choose JPEG as "Save as type", click "Desktop" on the left pane, and click "Save".
4. Please find the screenshot on the Desktop and send it as an attachment to:
v-30agz@mssupport.microsoft.com.
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It
does work. It takes a long time to do it all and I should just say; after I followed these instructions from M$ yesterday, I found three more updates waiting for me today, which I installed (also took quite a long time) and when I went back to M$ Updates and did a search, I found that I no longer had 'Hidden' updates and everything was up-to-date! So..it was all worth it!
The only query I have now - is why Update KB982168 is showing in Add/Remove as KB976769.v2! I've done searches everywhere and all I get are Microsoft sites spouting jargon that I am at a loss to understand! All I know for certain, is that this is indeed, the correct update, but is shown installed as a different number!
Hope this helps.