I was just now able to get my computer back up and running. I have a xp pro sp3 system running on a asus mother board. Here's what I did. It looks like kb977165 is the bad update so I concentrated on only that one.
I could not use the "batch spuninst.txt" command as it produced access denied messages and did nothing. Looking at the logs for that update I could see it was trying to park files in the documents and settings area outside of the recovery console security
area. I saw a tip here in the threads to just go to the kb977165 folder and get the old ntkrnlpa.exe and ntoskrnl.exe files and put them back in the system32 folder. Here are my steps
Start recovery console using the xp cd (if you don't have a cd you're in trouble). This will bring you to the system root. In my case E:\windows\
follow these commands
E:\windows\cd system32 <cr>(carriage return)
E:\windows\system32\ren ntkrnlpa.exe ntkrnlpa.old <cr>
E:\windows\system32\ren ntoskrnl.exe ntoskrnl.old <cr>
E:\windows\system32\systemroot <cr>
E:\windows\cd $ntuninstallkb977165$ <cr>
E:\windows$ntuninstallkb977165$\copy ntkrnlpa.exe E:\windows\system32\ntkrnlpa.exe <cr>
E:\windows$ntuninstallkb977165$\copy ntoskrnl.exe E:\windows\system32\ntoskrnl.exe <cr>
E:\windows$ntuninstallkb977165$\exit <cr>
This will reboot the system.
I selected safe mode when the screen popped up but then it rebooted itself (didn't do that before for me) and I let it come up in normal mode.
I then logged in as a administrator and went to the control panel - add/remove programs (check show updates).
I then found kb977165 update and removed it. It gave some warnings about other updates not working properly but I haven't found a problem yet.
I rebooted again and the system had to find the hardware all over again but once that was done and another reboot everything was back to normal.
Hope this helps at least one other person.