maybe this?

Reinstall MSXML 4.00 sp2

http://download.microsoft.com/download/9/6/5/9657c01e-107f-409c-baac-7d249561629
c/msxml.msi

2. When the File Download window appears, please click the Save button, and
follow the directions to save it to the Desktop.
3. After downloading this file, please double-click the "msxml.msi" file on
the Desktop. Then the installation will be performed automatically.
4. If you receive three options "Modify", "Repair", and "Remove", please
click "Remove" and follow the instructions to remove MSXML 4.0 Service Pack
2.

5. After removing it, please double-click "msxml.msi" file again, click
"Install Now" button, and then follow the instructions.

After reinstalling MSXML 4.0 Service Pack 2, please move on to step 2 to
install the update KB927978.

Step 2: Reinstall MSXML 4.0 SP2 Security Update (KB927978)
============================================
1. Please download the update from the following link:

http://download.microsoft.com/download/e/2/e/e2e92e52-210b-4774-8cd9-3a7a0130141
d/msxml4-KB927978-enu.exe

2. When the File Download window appears, please click the Save button, and
follow the directions to save it to the Desktop.
3. After downloading this file, please double-click the
"msxml4-KB927978-enu.exe" file on the Desktop. Then the installation will be
performed automatically.

4. After finishing the above steps, please check the result on the Windows
Update website again.
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Above copied from an MS support mail, se if it helps