bishey,
Try the following fixes in order until the issue resolves itself.

1. Ensure that the Cryptographic Service is running. To do that, perform the following steps:
Open a command prompt, and then type net start cryptsvc
Attempt to apply the patch.

2. Ensure that the Cryptographic Service is not using invalid catalogs
Open a command prompt, and type the following commands:
net stop cryptsvc
ren %systemroot%\system32\catroot2 oldcatroot2
net start cryptsvc
Attempt to reapply the patch

3. Reregister the cryptographic service .DLL files.
Open a command prompt, and type the following commands:
regsvr32 softpub.dll
regsvr32 wintrust.dll
regsvr32 initpki.dll
regsvr32 dssenh.dll
regsvr32 rsaenh.dll
regsvr32 gpkcsp.dll
regsvr32 sccbase.dll
regsvr32 slbcsp.dll
regsvr32 cryptdlg.dll
Click OK when you recive the popup stating the DllRegisterServer succeeded
Restart the computer
Attempt to reapply the patch

4. Attempt to use an older registry via the Recovery Console (note that this step is risky and may force an operating system reinstall if it fails). This post details what you need to do ince you're in the recovery console.

bishey,

This post should allow you to correct the problem.

Or this link may help

http://updatexp.com/cryptographic-service.html

To the people who posted responses to the question posted by Bishey:  Thank you very much for the suggested solutions.  I was having the same problem and contacted Dell's technical support a couple of different times.  I explained the message to 2 different tech support reps very clearly and both would just tell me that I needed to download the update from Microsoft's site (again).   My problem wasn't with the download, it was with the INSTALLATION  of the security  updates, but they clearly were not listening to my problem.

Anyway, after a very frustrating few nites of searching and calling, etc, etc, I decided to see if anyone online would know or have this same problem.  It was a relief to find that I wasn't the only one w/ this problem, and better yet to have found people who had solutions.   The #3 solution (re-register the cryptographic service) was the clincher

THANKS AGAIN       I now have my computer back and have learned a good lesson about keeping those security updates current !