See if this MSKB sheds any light on the issue :
Computer stops responding (hangs) during setup when you install updates
http://support.microsoft.com/kb/281967
NOTE this part :
> To resolve this problem, apply the fix that is described in the following
> Microsoft Knowledge Base article:
> http://support.microsoft.com/kb/301540/ CreateFile improperly returns
> ERROR_ALREADY_EXISTS if the Drive is locked and the file did not exist
MowGreen [MVP 2003-2006]
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*-343-* FDNY
Never Forgotten
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Symmes1 wrote:
> When installing updates the installation process freezes. The blue line goes
> all the way over but that is it. Nothing else happens. I have left the
> computer on all night the next morning the computer is running but the
> monitor screen is blank and want turn back on. To make the computer work
> again I have to press the power button on the computer. When the computer
> comes back on everything is working. The installation process fails though.
> I have contacted Microsoft but they haven't been able to fix the problem. I
> am posting this to see if anyone else has had this problem My system is
> Windows ME.