Thanks to all for the help in this forum. I too had the Blue Screen problem but can boot in safe mode.
I tried the solution proposed using the recovery module but the required uninstall directory was not available. I found it was not there but did find a log file which suggests the update did not complete.
I do not understand it all so I am posting the log below in case it is helpful.
I have managed to cure the problem by booting in safe mode, going to <start><run><msconfig> and removing all the start-up items and turning off boot.ini etc.
The computer is now starting and no doubt I can turn on the startup items one at a time and see what happens. I hope this helps somebody!!
Terry
The log file showed:
[KB977165.log]
1.156: ================================================================================
1.156: 2010/02/10 08:06:18.625 (local)
1.172: C:\WINDOWS\SoftwareDistribution\Download\1e737459aaabc35cf71b0434922b4d59\update\update.exe (version 6.3.13.0)
1.172: Failed To Enable SE_SHUTDOWN_PRIVILEGE
1.172: Hotfix started with following command line: -q -z -er /ParentInfo:3f2409d7b12f154585f23cfdda315348
1.172: In Function GetReleaseSet, line 1240, RegQueryValueEx failed with error 0x2
2.453: In Function TestVolatileFlag, line 11825, RegOpenKeyEx failed with error 0x2
2.453: In Function TestVolatileFlag, line 11857, RegOpenKeyEx failed with error 0x2
2.453: DoInstallation: CleanPFR failed: 0x2
2.500: In Function GetReleaseSet, line 1240, RegQueryValueEx failed with error 0x2
2.500: SetProductTypes: InfProductBuildType=BuildType.Sel
2.500: SetAltOsLoaderPath: No section uses DirId 65701; done.
2.625: DoInstallation: FetchSourceURL for c:\windows\softwaredistribution\download\1e737459aaabc35cf71b0434922b4d59\update\update_SP3GDR.inf failed
2.625: CreateUninstall = 1,Directory = C:\WINDOWS$NtUninstallKB977165$
2.625: LoadFileQueues: UpdSpGetSourceFileLocation for halmacpi.dll failed: 0xe0000102
2.687: BuildCabinetManifest: update.url absent
2.703: Starting AnalyzeComponents
2.703: AnalyzePhaseZero used 0 ticks
2.703: No c:\windows\INF\updtblk.inf file.
2.703: SetupFindFirstLine in LoadExclusionList Failed with error: 0xe0000102
2.703: SetupFindFirstLine in LoadExclusionList Failed with error: 0xe0000102
2.703: Enumerating Devices of computer, GUID {4d36e966-e325-11ce-bfc1-08002be10318}
3.062: OEM file scan used 359 ticks
8.281: AnalyzePhaseOne: used 5578 ticks
8.281: AnalyzeComponents: Hotpatch analysis disabled; skipping.
8.281: AnalyzeComponents: Hotpatching is disabled.
8.281: FindFirstFile c:\windows$hf_mig$\*.*
8.281: KB977165 Setup encountered an error: The update.ver file is not correct.
8.328: KB977165 Setup encountered an error: The update.ver file is not correct.
8.328: KB977165 Setup encountered an error: The update.ver file is not correct.
8.328: KB977165 Setup encountered an error: The update.ver file is not correct.
8.328: KB977165 Setup encountered an error: The update.ver file is not correct.
8.328: KB977165 Setup encountered an error: The update.ver file is not correct.
8.515: AnalyzeForBranching used 187 ticks.
8.672: AnalyzePhaseTwo used 157 ticks
8.672: AnalyzePhaseThree used 0 ticks
8.672: AnalyzePhaseFive used 0 ticks
8.672: AnalyzePhaseSix used 0 ticks
8.672: AnalyzeComponents used 5969 ticks
8.672: Downloading 0 files
8.672: bPatchMode = FALSE
8.672: Inventory complete: ReturnStatus=0, 6047 ticks
8.672: Num Ticks for invent : 6047
8.672: VerifyTargetFileSize: Unable to verify size as Source = NULL for file c:\windows\inf\HFX1F.tmp
8.703: Copied file: c:\windows\inf\branches.inf
34.672: Allocation size of drive C: is 4096 bytes, free space = 280704712704 bytes
34.781: AnalyzeDiskUsage: Skipping EstimateDiskUsageForUninstall.
34.781: Drive C: free 267700MB req: 32MB w/uninstall: NOT CALCULATED.
34.781: CabinetBuild complete
34.781: Num Ticks for Cabinet build : 26109
34.781: DynamicStrings section not defined or empty.
34.781: FileInUse:: Detection disabled.
35.781: LoadFileQueues: UpdSpGetSourceFileLocation for halmacpi.dll failed: 0xe0000102
35.906: Num Ticks for Backup : 1125
35.984: Num Ticks for creating uninst inf : 78
35.984: Registering Uninstall Program for -> KB977165, KB977165 , 0x0
35.984: LoadFileQueues: UpdSpGetSourceFileLocation for halmacpi.dll failed: 0xe0000102
36.078: System Restore Point set.
36.250: PFE2: Not avoiding Per File Exceptions.
36.453: GetCatVersion: Failed to retrieve version information from C:\WINDOWS\system32\CatRoot{F750E6C3-38EE-11D1-85E5-00C04FC295EE}\KB977165.cat with error 0x57
36.828: ProcessSetupContentSection: PROCESS_SETUP_CONTENT_OP_INSTALL: Copied c:\windows\softwaredistribution\download\1e737459aaabc35cf71b0434922b4d59\update\update_SP3QFE.inf -> c:\windows$hf_mig$\KB977165\update\update_SP3QFE.inf.
36.843: ProcessSetupContentSection: PROCESS_SETUP_CONTENT_OP_INSTALL: Copied c:\windows\softwaredistribution\download\1e737459aaabc35cf71b0434922b4d59\spuninst.exe -> c:\windows$hf_mig$\KB977165\spuninst.exe.
36.843: ProcessSetupContentSection: PROCESS_SETUP_CONTENT_OP_INSTALL: Copied c:\windows\softwaredistribution\download\1e737459aaabc35cf71b0434922b4d59\spmsg.dll -> c:\windows$hf_mig$\KB977165\spmsg.dll.
36.953: ProcessSetupContentSection: PROCESS_SETUP_CONTENT_OP_INSTALL: Copied c:\windows\softwaredistribution\download\1e737459aaabc35cf71b0434922b4d59\update\spcustom.dll -> c:\windows$hf_mig$\KB977165\update\spcustom.dll.
37.187: ProcessSetupContentSection: PROCESS_SETUP_CONTENT_OP_INSTALL: Copied c:\windows\softwaredistribution\download\1e737459aaabc35cf71b0434922b4d59\update\KB977165.CAT -> c:\windows$hf_mig$\KB977165\update\KB977165.CAT.
37.468: ProcessSetupContentSection: PROCESS_SETUP_CONTENT_OP_INSTALL: Copied c:\windows\softwaredistribution\download\1e737459aaabc35cf71b0434922b4d59\update\update.exe -> c:\windows$hf_mig$\KB977165\update\update.exe.
37.468: ProcessSetupContentSection: PROCESS_SETUP_CONTENT_OP_INSTALL: Copied c:\windows\softwaredistribution\download\1e737459aaabc35cf71b0434922b4d59\update\updspapi.dll -> c:\windows$hf_mig$\KB977165\update\updspapi.dll.
37.593: ProcessSetupContentSection: PROCESS_SETUP_CONTENT_OP_INSTALL: Copied c:\windows\softwaredistribution\download\1e737459aaabc35cf71b0434922b4d59\update\update.ver -> c:\windows$hf_mig$\KB977165\update\update.ver.
37.593: ProcessSetupContentSection: PROCESS_SETUP_CONTENT_OP_INSTALL: Copied c:\windows\softwaredistribution\download\1e737459aaabc35cf71b0434922b4d59\update\updatebr.inf -> c:\windows$hf_mig$\KB977165\update\updatebr.inf.
37.672: ProcessSetupContentSection: PROCESS_SETUP_CONTENT_OP_INSTALL: Copied c:\windows\softwaredistribution\download\1e737459aaabc35cf71b0434922b4d59\update\eula.txt -> c:\windows$hf_mig$\KB977165\update\eula.txt.
37.718: ProcessSetupContentSection: PROCESS_SETUP_CONTENT_OP_INSTALL: Copied c:\windows\softwaredistribution\download\1e737459aaabc35cf71b0434922b4d59\update\branches.inf -> c:\windows$hf_mig$\KB977165\update\branches.inf.
38.062: Copied file: C:\WINDOWS\system32\ntkrnlpa.exe
38.562: Copied file: C:\WINDOWS\system32\ntoskrnl.exe
38.687: Copied file: C:\WINDOWS\Driver Cache\i386\ntoskrnl.exe
38.781: Copied file: C:\WINDOWS\Driver Cache\i386\ntkrpamp.exe
39.078: Copied file: C:\WINDOWS\Driver Cache\i386\ntkrnlpa.exe
39.125: Copied file: C:\WINDOWS\Driver Cache\i386\ntkrnlmp.exe
39.281: Copied file: C:\WINDOWS\system32\DllCache\ntoskrnl.exe
39.437: Copied file: C:\WINDOWS\system32\DllCache\ntkrpamp.exe
39.453: Copied file: C:\WINDOWS\system32\DllCache\ntkrnlpa.exe
39.531: Copied file: C:\WINDOWS\system32\DllCache\ntkrnlmp.exe
39.562: Copied file: c:\windows$hf_mig$\KB977165\SP3QFE\ntkrnlpa.exe
39.734: Copied file: c:\windows$hf_mig$\KB977165\SP3QFE\ntoskrnl.exe
39.922: Copied file: c:\windows$hf_mig$\KB977165\SP3QFE\ntkrpamp.exe
40.078: Copied file: c:\windows$hf_mig$\KB977165\SP3QFE\ntkrnlmp.exe
40.859: DoInstallation: Installing assemblies with source root path: c:\windows\softwaredistribution\download\1e737459aaabc35cf71b0434922b4d59\
40.859: Num Ticks for Copying files : 4875
40.859: Num Ticks for Reg update and deleting 0 size files : 0
43.390: UpdateSpUpdSvcInf: Source [ProcessesToRunAfterReboot] section is empty; nothing to do.
43.390: IsRebootRequiredForFileQueue: c:\windows\system32\ntkrnlpa.exe was no-delay replaced; reboot is required.
43.390: IsRebootRequiredForFileQueue: c:\windows\system32\ntoskrnl.exe was no-delay replaced; reboot is required.
43.390: DoInstallation: A reboot is required to complete the installation of one or more files.
43.390: In Function SetVolatileFlag, line 11741, RegOpenKeyEx failed with error 0x2
43.390: In Function SetVolatileFlag, line 11758, RegOpenKeyEx failed with error 0x2
43.390: UpdateSpUpdSvcInf: Source [ProcessesToRunAfterReboot.RebootNotRequired] section is empty; nothing to do.
43.437: RebootNecessary = 1,WizardInput = 1 , DontReboot = 1, ForceRestart = 0