I had a similiar problem I was only able to solve by uninstalling
..NETframwork 2.0 by the method described here:
http://blogs.msdn.com/astebner/archi...16/408856.aspx
If you don't have 2.0 installed then you have a different problem. You
should try repairing or reinstalling .NET 1.1.
Here is a link that may help:
http://support.microsoft.com/default...b;en-us;824643
This problem is posted in this and other microsoft newsgroups practically
every day yet rarely do I see any knowledgeable solutions to the problem.
DotNET 2.0 should not be on the windows update site since it is still buggy.
"Dick" <LeadWinger> wrote in message
news

...
> When I run the Microsoft Windows update, I always get an update to
> Microsoft. NET Framework 1.1. It downloads fine, but fails on
> installation. I get an error message that states, "Application has
> generated an exception that could not be handled." This has been
> happening for months. I have four networked computers. Two running
> XP Pro SP2 and two running XP Home SP2. All four fail the same way
> when trying to install the NET Framework 1.1 update. What could be
> the problem?