Fix for Failed Security Update for Microsoft XML Core Services 4.0 Service Pack 2

I recently built up a new Hyper-V virtual domain environment based on a single server image. Unfortunately, my base image had a problem downloading and installing the Security Update for Microsoft XML Core Services 4.0 Service Pack 2 (KB936181). The yellow Windows Update shield would pop up in the notification area to say the update was ready to install. I would install it, but Automatic Updates would download it again and say it needed to be installed again.

Here's what the event logs looked like:

Event Type: Information
Event Source: Windows Update Agent
Event Category: Installation Event
ID: 19
Date: 4/15/2008 Time: 7:11:59AM
User: N/A
Computer: HOSCOM
Description:Installation Successful:
Windows successfully installed the following update: Security Update for
Microsoft XML Core Services 4.0 Service Pack 2 (KB936181)

... and then almost immediately,

Event Type: Information
Event Source: Windows Update AgentEvent
Category: Installation Event
ID: 18
Date: 4/15/2008 Time: 7:12:50AM
User: N/A
Computer: HOSCOM
Description:Installation Ready: The following updates are downloaded and ready for installation. This computer is currently scheduled to install these updates on Wednesday, April 16, 2008 at 3:00 AM: - Security Update for Microsoft XML Core Services 4.0 Service Pack 2(KB936181)

Very annoying. To fix this issue, download the update from Microsoft and manually install it. The update can be found here.