Windows Update KB 2742597 has repeatedly failed to update

RE: Unable to install KB2742597 update manually or via Microsoft Update.

I too had this problem… here is how I resolved the issue using the “manual” installation method on my Windows XP SP3 32-bit (x86) computer.

Download Microsoft .NET Framework Version 1.1 (dotnetfx.exe) via:

http://www.microsoft.com/en-us/download/details.aspx?displaylang=en&id=26

Download KB2742597 (NDP1.1sp1-KB2742597-X86.exe) via:

http://www.microsoft.com/en-us/download/details.aspx?id=36281

Using the compression tool (WinRar, WinZip, etc) of your choice, extract the dotnetfx.exe file to an empty folder – when extracted this folder should contain the following five files: install.exe, InstMsi.exe, InstMsiW.exe, netfx.msi and netfx1.cab.

Run the NDP1.1sp1-KB2742597-X86.exe file which you downloaded.

Follow the installation prompts – when prompted to insert the Microsoft .NET Framework Version 1.1 CD, click browse and navigate to the folder containing the files extracted from dotnetfx.exe, select netfx.msi, click okay then continue with the installation.

This should, if you are having what I assume is a missing file(s) issue, lead to a successful update of KB2742597.

Addendum

If you encountered problems and/or want to try an alternate method to resolve this issue, try reinstalling Microsoft .NET Framework Version 1.1 via the dotnetfx.exe file, then installing the update (NDP1.1sp1-KB2742597-X86.exe).

NOTE: Be sure to use files in the same language (English with English, Spanish with Spanish, Russian with Russian, etc) – doing otherwise will, in all probability, cause installation errors and an unsuccessful update.