Problems installing KB974431 on Windows 2008 R2

I recently built a new Windows 2008 R2 server. typical setup. Once everything was configured, I decided to do a Windows Update, as you do. I noticed that one of the updates was taking a long time. This was update KB974431. I stopped the update and rebooted the server, on reflection, probably the wrong thing to do

When the server rebooted I could no longer add roles or features. Any type of install package (standalone or windows update) failed. The following message is logged in Event Viewer:

Faulting application name: TrustedInstaller.exe, version: 6.1.7600.16385, time stamp: 0x4a5bc4b0
Faulting module name: ntdll.dll, version: 6.1.7600.16385, time stamp: 0x4a5be02b
Exception code: 0xc00000fd
Fault offset: 0x0000000000055237
Faulting process id: 0xa4c
Faulting application start time: 0x01cad7b3f2c0ddbc
Faulting application path: C:WindowsservicingTrustedInstaller.exe
Faulting module path: C:WindowsSYSTEM32ntdll.dll
Report Id: 32686db6-43a7-11df-a8a2-001143352b3e

After quite a bit of time looking through google, I came across a few pages that managed to solve the problem. It seems the problem is caused by an update failing and causing the install packages to become corrupt. I came across the following page, which had this comment:

Problem solved…

just replace package_for_kb974431_rtm~31bf3856ad364e35~amd64~~
file located at c:windowsservicingpackages with the same file from
functional server. Or you can have this file from update. You can download it
here and unpack it: Just rename
Windows6.1-KB974431-x64.msu to … open it, open inside and there you will find

you will also have to take ownership over old file and also you will have to
set proper permissions on c:windowsservicingpackages folder – in order to
rename old file and copy the new one

The following website is also very useful.