Unable to rename spupdsvc

I have tried renaming the file to old but XP keeps telling me it is being
used by another person or program.
Also I have tried running the update please find below the log file

1.625: c:\5b50d8b3a4e83e2bbcceb96f\update\update.exe (version 6.1.22.4)
1.625: Hotfix started with following command line:
2.719: In Function TestVolatileFlag, line 11660, RegOpenKeyEx failed with
error 0x2
2.719: In Function TestVolatileFlag, line 11692, RegOpenKeyEx failed with
error 0x2
2.719: DoInstallation: CleanPFR failed: 0x2
2.735: SetProductTypes: InfProductBuildType=BuildType.IC
2.735: SetAltOsLoaderPath: No section uses DirId 65701; done.
2.766: DoInstallation: FetchSourceURL for
c:\5b50d8b3a4e83e2bbcceb96f\update\update_SP2GDR.i nf failed
2.782: LoadFileQueues: UpdSpGetSourceFileLocation for halmacpi.dll failed:
0xe0000102
2.782: BuildCabinetManifest: update.url absent
2.782: Starting AnalyzeComponents
2.782: AnalyzePhaseZero used 0 ticks
2.782: No c:\windows\INF\updtblk.inf file.
2.782: OEM file scan used 0 ticks
2.860: AnalyzePhaseOne: used 78 ticks
2.860: AnalyzeComponents: Hotpatch analysis disabled; skipping.
2.860: AnalyzeComponents: Hotpatching is disabled.
2.860: FindFirstFile c:\windows\$hf_mig$\*.*
3.063: AnalyzeForBranching used 0 ticks.
3.079: AnalyzePhaseTwo used 16 ticks
3.079: AnalyzePhaseThree used 0 ticks
3.079: AnalyzePhaseFive used 0 ticks
3.094: AnalyzePhaseSix used 15 ticks
9.563: AnalyzeComponents used 6781 ticks
9.563: Downloading 0 files
9.563: bPatchMode = FALSE
9.563: Inventory complete: ReturnStatus=0, 6797 ticks
10.110: CreateUninstall = 1,Directory = C:\WINDOWS\$NtUninstallKB898461$
10.110: Num Ticks for invent : 7344
10.110: VerifySize: Unable to verify size: Source = NULL:
c:\windows\inf\HFXB0.tmp
10.110: Copied file: c:\windows\inf\branches.inf
10.329: Allocation size of drive C: is 4096 bytes, free space = 54474772480
bytes
10.344: AnalyzeDiskUsage: Skipping EstimateDiskUsageForUninstall.
10.344: Drive C: free 51951MB req: 14MB w/uninstall: NOT CALCULATED.
10.344: CabinetBuild complete
10.344: Num Ticks for Cabinet build : 234
10.344: DynamicStrings section not defined or empty.
10.344: FileInUse:: need to restart already, turn off
11.344: LoadFileQueues: UpdSpGetSourceFileLocation for halmacpi.dll failed:
0xe0000102
11.563: Num Ticks for Backup : 1219
11.657: Num Ticks for creating uninst inf : 94
11.657: Registering Uninstall Program for -> KB898461, KB898461 , 0x0
11.688: Unable to get File Version
11.688: Failed to copy spupdsvc.exe to system32
12.204: DeRegistering the Uninstall Program -> KB898461, 0
12.204: KB898461 Setup canceled.
16.172: Message displayed to the user: KB898461 Setup canceled.
16.172: User Input: OK
16.172: Update.exe extended error code = 0xf00d
16.172: Update.exe return code was masked to 0x643 for MSI custom action
compliance.

Can anyone help please.