The following excerpt is from MS,  in response to an incident report, and it resolved the problem. I can't vouch for it personally.

 

". NET Framework, Version 1.1 Service Pack 1 (KB928366) failed to install after
several attempts. The other updates were installed successfully.

 

The issue can be caused by a damaged .NET Framework component.

 

Step 1: Download Microsoft Windows Installer CleanUp utility
============================================
1. Visit:
http://download.microsoft.com/download/E/9/D/E9D80355-7AB4-45B8-80E8-983A48D5E1BD/msicuu2.exe
2. Save the file to your Desktop

3. Please double click the file msicuu2.exe on the Desktop to install this
tool on your computer.

 

Step 2: Remove .NET Framework 1.1
========================
1. Click Start -> (All) Programs->Windows Installer Clean Up.
2. See if you can find .NET Framework software. If so, remove it.
3. Restart the computer and see if the issue still exists.

 

For more information, please refer to:
-----------
Title: Description of the Windows Installer CleanUp Utility
Link: http://support.microsoft.com/default.aspx?scid=kb;en-us;290301

 

However, if any problem is encountered when trying to uninstall .NET
Framework 1.1, we can also refer to the following Knowledge Base article to
uninstall it manually.
http://support.microsoft.com/?id=320112

 

After that, please restart the computer and perform the following
suggestions to reinstall .NET Framework 1.1 and the updates for it.

 

Step 3: Install .NET Framework 1.1 Redistributable Package and .NET
Framework 1.1 SP1
=================================================================
1. Please download the Microsoft .NET Framework Version 1.1 Redistributable
Package and the updates from the following link and save them to the C drive
(C:\)

 

Microsoft .NET Framework Version 1.1 Redistributable Package
http://download.microsoft.com/download/a/a/c/aac39226-8825-44ce-90e3-bf8203e74006/dotnetfx.exe

 

Microsoft .NET Framework 1.1 Service Pack 1
http://download.microsoft.com/download/8/b/4/8b4addd8-e957-4dea-bdb8-c4e00af5b94b/NDP1.1sp1-KB867460-X86.exe

 

Security Update for Microsoft .NET Framework, Version 1.1 Service Pack 1
(KB928366)
http://www.download.windowsupdate.com/msdownload/update/v3-19990518/cabpool/ndp1.1sp1-kb928366-x86_20112ef50011e0de2c0e3378139245d81a178b15.exe

 

2. When the File Download window appears, please click the Save button, and
follow the directions to save it to Windows. After downloading the Microsoft
.NET Framework 1.1 setup file onto your computer, please double-click the
.NET Framework files to manually install them one by one.

 

If an error is encountered when installing .NET Framework 1.1, we can also
refer to the following Microsoft Knowledge Base article to troubleshoot this
issue:
 
How to troubleshoot Microsoft .NET Framework 1.1 installation issues
http://support.microsoft.com/?id=824643 "

There is a problem with one of the updates on Vista, too.  Don't know if it's the same update but looking on the net and at Microsoft there doesn't seem to be any fix.  There are a lot of suggestions but I've tried them all and none have fixed my problem.  I'm getting an error code of 643

Thanks, Jack. I don't even get an error code and there is no useful information about that particular update on the MS site. Oh, well!

Arnie

Vista users obtain a Security warning prompt "An unidentified program wants access to your computer" when trying to install KB928366

 

 

When I try to go into standby or hibernate, this is what I get: The service

'Microsoft .NET Framework v1.1.4322 Update' is preventing the machine from entering standby. Try stopping this service and try again.  Don't know how to disable this.

Net Framework cleanup tool,

 

http://www.microsoft.com/downloads/details.aspx?familyid=7a4efc33-0343-4ee4-b0c4-97bd16967a09&displaylang=en&tm

AQuaglieri

 

MS auto update feature can sometimes be a drag & switching it off doesn’t always work

And yes, some like KB928366 do appear to cause install problems

 

But suggest you don’t go into standby during any MS auto updates

 

If you try to shutdown a computer during any MS auto update/install you should get a warning message that updates are in progress, ignoring such a warning can cause problems

 

Albeit you should have a service called BITS (Background Intelligent Transfer Services) a program if enabled supports resuming download transfers in case of disruptions

 

For WXP Pro SP2, BITS default setting is Manual & changing the default settings is normally not recommended

If really interested in BITS & auto updates see this post

 

 

Thanks to all for there suggestions. Unfortunately, none of them worked!! Anyway, my compute is running just fine so I will leave well alone.

Thank you mombodog for the suggestion. When I went to the link for the cleanup tool and tried to download it, I got an error message that said that the file I was trying to download was not a valid Win 32 file.  Still need help. Again here is the problem.  When I try to put my Inspiron 700M into standby or hibernate mode I get this message:  The service 'Microsoft .NET Framework v1.1.4322 Update' is preventing the machine from enterng standby.  Try stopping this service and try again. >> There is nothing in the knowledge base about this error message or how to stop the service or why this occurs. This began after Tuesday's update to .NET Framework was downloaded.