No KB entry, no faultykeyboard.log, multiple restarts & multiple failed install attempts. Here's the latest. Loving the typo of 'Fist Condition' in the error log too.
[KB2686509.log]
12.281: ================================================================================
12.281: 2012/05/09 12:51:51.234 (local)
12.328: C:\WINDOWS\SoftwareDistribution\Download\3438087687b5dd8accc81e44f72f02e7\update\update.exe (version 6.3.13.0)
12.438: DoInstallation: GetProcAddress(InitializeCustomizationDLL) Returned: 0x7f
12.438: Failed To Enable SE_SHUTDOWN_PRIVILEGE
12.438: Hotfix started with following command line: -q -z -er /ParentInfo:189dd901f6eda142a3fa1c943153618e
12.438: In Function GetReleaseSet, line 1211, RegOpenKeyEx failed with error 0x2
12.438: In Function GetReleaseSet, line 1240, RegOpenKeyEx failed with error 0x2
12.735: Return Value From IsMachineSafe = 0
12.735: IsMachineSafe returned 441092
12.735: Fist Condition in Prereq.IsMachineSafe.Section Failed
12.735: Condition Check for Line 1 of PreRequisite returned FALSE
12.750: ReadStringFromInf: UpdSpGetLineText failed: 0xe0000102
12.750: KB2686509 Setup encountered an error: Setup cannot continue because one or more prerequisites required to install KB2686509 failed. For More details check the Log File c:\windows\KB2686509.log
12.750: ReadStringFromInf: UpdSpGetLineText failed: 0xe0000102
12.750: Setup cannot continue because one or more prerequisites required to install KB2686509 failed. For More details check the Log File c:\windows\KB2686509.log
12.750: Update.exe extended error code = 0xf0f4
0.437: ================================================================================
0.453: 2012/05/09 14:23:11.921 (local)
0.453: C:\WINDOWS\SoftwareDistribution\Download\3438087687b5dd8accc81e44f72f02e7\update\update.exe (version 6.3.13.0)
0.469: DoInstallation: GetProcAddress(InitializeCustomizationDLL) Returned: 0x7f
0.469: Failed To Enable SE_SHUTDOWN_PRIVILEGE
0.469: Hotfix started with following command line: -q -z -er /ParentInfo:f117260a6e4e9c40b8c7d93c5cbecba9
0.469: In Function GetReleaseSet, line 1211, RegOpenKeyEx failed with error 0x2
0.469: In Function GetReleaseSet, line 1240, RegOpenKeyEx failed with error 0x2
0.515: Return Value From IsMachineSafe = 0
0.515: IsMachineSafe returned 441092
0.515: Fist Condition in Prereq.IsMachineSafe.Section Failed
0.515: Condition Check for Line 1 of PreRequisite returned FALSE
0.515: ReadStringFromInf: UpdSpGetLineText failed: 0xe0000102
0.515: KB2686509 Setup encountered an error: Setup cannot continue because one or more prerequisites required to install KB2686509 failed. For More details check the Log File c:\windows\KB2686509.log
0.515: ReadStringFromInf: UpdSpGetLineText failed: 0xe0000102
0.515: Setup cannot continue because one or more prerequisites required to install KB2686509 failed. For More details check the Log File c:\windows\KB2686509.log
0.515: Update.exe extended error code = 0xf0f4