Windows 2003 SP1 server will not upgrade to SP2

Got an issue in upgrading a server to SP2.

Box: Win 2003 Ent SP1 x86

Roles: McAfee ePO server, DHCP, 2ndary DC

When installing SP2 it locks up (at the backing registry stage) and has 0 cpu usage in task manager. I then have to force close the process and then restart the machine. In the svcpack.log file the last entries say:

472.406: GetCatVersion:  Failed to retrieve version information from C:\WINDOWS\system32\CatRoot\{F750E6C3-38EE-11D1-85E5-00C04FC295EE}\Tmp.2.scw.cat with error 0x57
472.406: GetCatVersion:  Failed to retrieve version information from C:\WINDOWS\Tmp.2.scw.cat with error 0x80092004
473.531: GetCatVersion:  Failed to retrieve version information from C:\WINDOWS\system32\CatRoot\{F750E6C3-38EE-11D1-85E5-00C04FC295EE}\Tmp.2.sasetup.cat with error 0x57
473.562: GetCatVersion:  Failed to retrieve version information from C:\WINDOWS\Tmp.2.sasetup.cat with error 0x80092004
480.609: GetCatVersion:  Failed to retrieve version information from C:\WINDOWS\system32\CatRoot\{F750E6C3-38EE-11D1-85E5-00C04FC295EE}\Tmp.2.osccab.cat with error 0x57
480.609: GetCatVersion:  Failed to retrieve version information from C:\WINDOWS\Tmp.2.osccab.cat with error 0x80092004
480.906: GetCatVersion:  Failed to retrieve version information from C:\WINDOWS\system32\CatRoot\{F750E6C3-38EE-11D1-85E5-00C04FC295EE}\Tmp.2.ntprint.cat with error 0x57
480.937: GetCatVersion:  Failed to retrieve version information from C:\WINDOWS\Tmp.2.ntprint.cat with error 0x80092004

If I run the SP2 update with the /ER switch it says it has an internal error and then crashes nicely. The svcpack.log then says something different:

37.797: UnRegisterSpuninstForRecovery, failed to delete SpRecoverCmdLine value, error 0x2
37.797:  DoInstallation: Failed to unregistering spuninst.exe for recovery.
37.797: An internal error occurred.
155.813: Message displayed to the user: An internal error occurred.
155.813: User Input: OK
155.813: Service Pack 2 installation did not complete.
156.438: Message displayed to the user: Service Pack 2 installation did not complete.
156.438: User Input: OK
156.438: Update.exe extended error code = 0x1ffe054f

The extended error code (Update.exe extended error code = 0x1ffe054f) seems to be a more accurate description of the issue.

I also have noticed the setupapi.log file gets updated as well and it also contains lots of errors like this:

Error 87: The parameter is incorrect.

#-147 Loading class installer module for "Generic volume".
#W360 An unsigned, incorrectly signed, or Authenticode(tm) signed file "C:\WINDOWS\system32\syssetup.dll" for driver "Generic volume" will be installed (Policy=Ignore). Error 87: The parameter is incorrect.
#-148 Loading coinstaller modules for "Generic volume".
#W360 An unsigned, incorrectly signed, or Authenticode(tm) signed file "C:\WINDOWS\system32\SysSetup.Dll" for driver "Generic volume" will be installed (Policy=Ignore). Error 87: The parameter is incorrect.
[2009/08/19 16:34:58 4976.937 Driver Install]

I've posted the whole svcpack.log file on pastebin. http://pastebin.com/m54ee37ac

Some things I have tried (from googling):

• regsvr32 licdll.dll
• Renaming Catroot and software distribution folders (and then rebooting).
• Removed the McAfee VSE client software (not ePO)

Any suggestions and ideas would be greatly appreciated.

Can you just rebuild it from scratch and reinstall EPO? Might be the easier option.