KB973346 Install Loop - will not report status to WSUS

Hi,

We have approved patch 973346
(http://support.microsoft.com/default.aspx/kb/973346 - Cumulative Security
Update of ActiveX Kill Bits) to our network however it seems to install from
WSUS everyday.
Here's another person with the same problem:
http://www.eggheadcafe.com/software/...o-install.aspx

Basically the patch will install at the scheduled time. It's successfull
(event log), the KB973346.log appears OK and the patch appears in Add Remove
Programs.
WSUS reports that the patch is still required... It will then download the
update and wait for the next scheduled install time.

Is this a common thing? What can we do to stop this happening?
Thanks
Matt

Additional information.
WSUS reports that the patch has been superseeded... How can I find out what
superseeds this update?

Never mind. I found it in WSUS.

973346 has been superseeded by 973525.
We have declined 973525 as it breaks Visio Viewer 2003.

I'm guessing this has something to do with the fact we've declined 973525?