KB2862330 fails to install

V2 also caused another "32% hang during booting update" to me. Finally, I disabled all USB ports of my system in BIOS, used PS/2 keyboard to complete this update

I also had several issues with this hotfix causing bsods on a W7/sp1/Ent 32bit version on a Dell Inspiron.

I finally got it to install via the following steps that someone else recommended in this thread-

1. Removed any USB connected devices - only external was a bluetooth mouse receiver.
2. Booted into Safe Mode -> Disabled (but not uninstalled) integrated webcam from Device Manager, disabled and then uninstalled the USB Enhanced Host Controllers.
3. Rebooted into Windows. Installed hotfix. Rebooted.
4. Windows reinstalled the devices and things seem stable.

Extraordinary that the biggest software company on the planet can send out updates, that no-one but computer geeks can recover from! How many people are now stuck with a screwed PC and are now off to their local repair shop through no fault of their own. It's a disgrace!! I just spent two evenings trying to install and then rewinding this pile of c@^*. Why can't MS respond quickly and pull this out. There must be enough MS Borgs looking at these forums to catch these issues within a few hours of them happening.

Rant over until the next time.....

Once again enormous thanks to Susan Bradley, and now to Microsoft for their assistance. I was eventually transferred to an engineer on UK time zone. He spent over three hours running diagnostics and investigating matters. He has left me with a workable computer for the weekend and has promised to try further next week to get things properly sorted. I did mention to him that others have found that unplugging/ disabling USBs has helped to solve things. So doubtless the update will soon be sorted.