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I take it you guys are trying to install the Vista SP1 RC2/RTM update (build 6001.18000)?
I had that problem too. There are two ways to get it fixed. The first option is to do a reformat, install all the latest drivers for your system, and it should update without issue.
The second method is to manually install update KB937287, which can be found at this webpage.
Hope I've helped, and happy SP1-ing!
I think we are talking about 2 different things here.
The thread is about KB938371 failing to install. The other update does update with the stand alone installer. This one does not.