I wish I was this lucky...I raised a case with Dell AP Support last night with these following details, so stand-by for Dell's answer. I will post it later...

My Inspiron 9400 has suffered the same BSOD Stop error 8 times since 3rd February (after this Windows update) but I can boot OK. That's the paradox. My BSOD will occur at any random time after booting, 10 mins or several hours, generally when the computer is simply idle.

Crash dump analysis reveals a common cause: MULTIPLE_IRP_COMPLETE_REQUESTS (44) tagged via either device driver "usbhub.sys" or "tosrfusb.sys". The first ARG of the crash-analysis is sometimes the same and the second ARG is always the same. In layman's terms, this error occurs when two processes think that they've sent the same packet so the crash-dump could be from either process.

But the plot gets thicker following hardware diagnostic testing taking most of yesterday. USB hardware came up clean but...
1) Hard Drive DST Short Test failed attempting to start DST
Error Code 0146
Msg Error Code 2000-0146
Msg Unit 0 DST log contains previous errors
(2) Read test failure 0F00:0244
msg block 6086700
Uncorrectable data error or media write protected
(3) Verify test failure 0F00:1A44
msg block 6086700
Uncorrectable data error or media write protected

So this is beginning to look like a corrupted file or more on the disk but why is it taking so long for the BSOD to occur? Thus, the theory of targeted file corruption seems most sound but it makes no sense to me why the computer survives for so long given this most likely hypothesis.

Coupled with this file corruption hypothesis is that the recent Windows Update simply brings this problem out into the open as the kind of behavior the BSOD is trapping is a really serious security threat. Therefore, the penultimate hypothesis is that the Windows Update actually contained the corrupted files i.e. was infected of sorts...and the final hypothesis is that this symptom is the result of trapping the nasty work of a Trojan which means this is an otherwise unknown and previously undetected threat.

So a bit more analysis is needed before I embark on any fixes; the most likely one being a complete low-level reformat of the disk to remove the broken block from the list of valid blocks followed by a complete reinstall and upgrade.

If the forum has any further ideas or can re-rank my hypothesis given their extra knowledge, that will be greatly appreciated!

I have an ISPIRON E1505 and the same exact problem since Feb. 10/2010 when the automatic updates were applied.

I followed the same steps to uninstall the KB977165 update, reboot it and I'm not back on business.

Thanks a lot for finding out what the problem was. You saved me $120 dollars that a computer store near my  house wanted to charge me for fixing my BSOD.

How does one obtain the cd with the recovery console since my laptop did not come with one?  If i am unable to get one i am screwed and that sucks since MICROSOFT is a trusted source.

peter5534,

Since I bought my laptop from DELL, I called DELL Support and they sent me one in the mail.

You're my hero. I followed you're steps (had a problem booting from the CD - I needed to change some settings in the BIOS because my DVD-drive (master) is broken, so I changed the settings so that I could boot from my CD-RW drive (slave) ), I rebooted and I'm back in my good ol' Windows desktop. Thank you very much!

I called Microsoft and worked with specialist for about two hours and we got mine fixed.    They charge $59 plus tax.     I did some searching on this site and found out about the download problem.    I called Microsoft back and complained and they refunded my money.

THANK YOU!

I manually installed KB977165 on my Dimension 9100 and have had no known issue with it. This is the route I have to take now because wuauclt.exe seems to get stuck in a loop when I have run Windows Update in the last couple of months. If I leave it running, the only thing that happens is the Windows Update log file gets very big. That aside, one issue I have had is that Kaspersky Internet Security has been acting strangely lately. I haven't pinned it down to whether or not the issue is due to a problem with a hard disk or if it could be these updates that may have indirectly affected Kaspersky's driver. It seems to think that some files have changed, but I have not seen concrete evidence of this when checking their MD5 sums. Truly bizarre.

Hello,

Those of you that had the blue screen.... Did any of you find any malware on your system? Microsoft has said the blue screen with that update is due to malware being on the system., so I am curious as to what your feeling is about that...

The reason I ask is this... We had a machine in our house blue screen with the Error 0x0000007E. I was prepared to follow the solution noted in this thread, but I decided to restart the computer to see what would happen. It restarted fine. I tried a few more restarts and did not experience the blue screen.

Since MS had said it was related to malware, I ran a thorough avast scan, and found nothing. I then ran an avast boot scan and found nothing. Another user said his probelm was a tdss rootkit vius, and recommended Kaspersky TDSS killer.... I ran that and it found nothing... Throughout all the restarts, there was never a second blue screen...

So... how concerned should I be about a virus? I have no symptoms other than the one blue screen that is clearly somewhat related to the update. The only reason I am concerned at all is that MS has said the update will blue screen only if there is malware on  a system...

And.. on a similar note, has anyone had issues with the KB977165 still being offered even though it shows as being installed?

I am working on a DELL Dimension 4800 w/Windows XP OS.

I have tried your solution on all 10 updates but I am still getting the BSOD STOP ERROR. 

Should  I just delete the updates or try something else?

THANKS!

With my Dell Inspiron 9400, both the hard drive and memory was replaced by the Dell tech then the laptop rebuilt from scratch, with only user files restored from backups. It's also up-to-date with all of the aforementioned patches applied. Thank heavens for the extended warranty I bought last year! Apparently the hard-drive block error lay smack in an area that the kernel worked to from time-to-time when using USB devices. It was both faster and more cost-effective to replace the drive and memory. Dell Tech said that the old memory was abnormally slow but couldn't elabourate as to why. Low-level BIOS tests were really slow but not in error. This new memory is clocking faster @ 970Mhz (I think) but this alone does not mathematically explain the huge performance differential old > renewed. Ths is yet another mystery. So now I have a Dell free from this BSODs that is easly 20-times quicker with NTFS than before with no 1 minute halts waiting for apps or files to open, BSODs etc. Everthing fires up in flash now! Nevertheless, I'm careful with the rebuild to preserve the performance and stability. Unfortunately, I have encountered a raft of other errors not apparent with the old installation caused mainly by registry anomaly matters and installation flaws. But these errors form another story altogether.

Thank you I have had the same problem happened the night of 2/10/10

As you said it was the update KB977165 that was the cause

Deleted the update as per your instructions and it loaded right up!!!

Oh Goodness!!!!

It is KILLING ME that you all got this working and I'm still stuck with this same BSOD problem!

Can someone help me???

I'm in Recovery Console and I try to enter the command to remove the file but it says "System cannot find the file or directory specified".

One possible problem, I installed another version of Windows on the same drive and have two Windows folders because my original disk was bad, I couldn't boot Windows and the second disk I got wouldn't give me the Recovery Console option and went straight to the install portion of the Setup. So , I've got two Windows XP installs - one works with only generic drivers, and one doesn't - which has everything the way i need it to be.

Can someone give me step by step directions from this point to get rid of the update files from Microsoft that screwed the computer up to begin with? I am nearly positive I am having the same problem on this system as you all did - it was always downloading and installing updates without my asking.

You might want to "Repair Install". 

This is what I had to do to get the computer up and running again so that all my files were still intact.

Go to this web page --> http://www.webtree.ca/windowsxp/repair_xp.htm

scroll down until you see "How to Repair Install:"

Follow (print if necessary) the instructions and you should be up and running again.

NOTE: you might have to activate windows again so it is a good idea to have your XP Product Key and you will want to run a "Custom Windows Update"  and install all the updates you see except the one that created your problem [KB97****]

Also good reading -->http://michaelstevenstech.com/XPrepairinstall.htm

Thanks, Im trying that now.

I tried to remove that update file and it seems it did not exist on the drive, so perhaps the culprit is just a corrupt Windows install file.