For the past few days this Security Update for SQL Server 2005 with SP2 kept nagging me via Windows update on my windows XP SP2 machine at work. Couple of times, I did try installing it and the installation completed without any apparent errors. But a few minutes later the Windows update nag would show up again. I downloaded the KB from Microsoft and tried a manual installation. After 5 minutes the message “No qualifying product installed on this machine” popped up. 5 minutes later the nag message popped up. I had disabled couple of ununsed services like Analysis and reporting, enabled those. Still no luck.
I had resisted upgrading to Windows XP SP3. Finally I relented and installed SP3 and then the KB and that took care of the nag. The KB installed without any errors although it did take a while (more than 20 minutes) to complete.
Hope this helps someone.