Thanks Shane.  I tried the first link but, within 2 seconds of the download commencing, my PC crashed again and I'm not game to try
the http://tinyurl.com/5fc3d link!   Guess I had better keep trying through MS.  At least their non-response doesn't cause a crash.

Jim

Andy,

I believe that your %1/%2 error may be caused by Norton LiveUpdate, corrupting your O/S,  although there are other possible causes.
I am STILL unable to download/install this KB.  Every time I get to the point of 'Review and Install', the MS Download button
doesn't work  I have checked for virii or spyware; used Add/Remove to repair IE, all to no avail.   I have never used/installed any
Norton product so I am severely pinged off and have now given up trying.

Your "Windows Could Not Upgrade the File %1 from %2 %1: %2" error:

First boot to DOS using a floppy and check whether you have a WININIT.INI
file in your C:\WINDOWS folder.  If present rename it to something like
wininit.old and try booting again.  It is also probable that you will have
to repeat the last software install or update that you made.  See MS
KB283069 - "Error Message: Windows Could Not Upgrade the File %1 from %2
%1: %2 (http://support.microsoft.com?kbid=283069).

If you can't find a wininit.ini file then I suspect your problem is due to
the C:\_RESTORE\TEMP folder having around 64K files in it which is the
limit (2**16) for the number of files that can be located in a folder
using the FAT32 filing system.  This then results in the "Cannot upgrade
file %1  from %2.." message when booting.  I suggest you try deleting the
_RESTORE  folder with the loss of any system restore checkpoints you might
have (not that I think they are now usable) and see if that solves the
problem.  Delete the folder as follows:
a) Boot to DOS using a floppy.  Do NOT choose "Minimal Boot" from the menu
when booting from a floppy but rather choose "Start computer with (or
without) CD-ROM support" otherwise the ATTRIB command will not be
available.
b) At the DOS A:\> prompt, type:

ATTRIB    -H   -S    -R    C:\_RESTORE
and then
REN    C:\_RESTORE    OLDREST

c) Remove the floppy
d) Reboot your PC

Another problem is that the update you were doing was never completed so
your system may still be unusable and the update repeated.

e) Delete the folder C:\OLDREST
f) Check that an automatic system restore checkpoint was created.
g) Finally adjust the space allocated to the restore folder:
System | Performance | File System | Hard Disk and adjust the restore
slider to your preferred setting.  A  figure of 200MB is normally more
than  adequate for day to day use allowing perhaps a week of checkpoints
to be available although increasing this to perhaps 400MB for a few days
during periods of large installs such Microsoft Office is advisable.