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It appears this is a comman problem with NET Framework.
If you do a serch on Google with KB953297 you will see some methods of correcting this issue.
In addition to Ron's good suggestion, please try the steps below:
Re-register the Windows Update DLL with the commands below
Click Start, click Run, type cmd, and then click OK.
Type the following commands. Press ENTER after each command.
Attempt to run Windows Update
If it still won't install, please try downloading the full manual installer of the update, then run the installer. Here's the link. (Since you didn't give us the operating system on your machine, you'll need to identify the specific download you need.):
In some cases, if it still won't install correctly, then uninstall NET Framework 1.1 SP1 from your computer, then download the manual installer and reinstall everything in order.
After uninstalling the old, then first install the NET Framework 1.1 redistributable from this link:
Next, download and install the SP1 package from here:
And finally, install the recent update using the link I posted earlier
Hope this helps.
Thanks very much for providing a solution that worked. I was able to install the latest update from msft updates page. One thing that may help others in the future is to let them know they don't have to install all of the .net updates in order beginning with the first. You just need to run the install of the latest one which was on you PC before, or even better, simply run the latest update posted.
Great job, and thanks again for the quick reply with the right solution.