Windows XP update not working

I have a problem with XP updating.

It hangs when I try to search for updates on the website. But the automatic updates still work.

And it's running IE6, so I'm trying to update to IE8, hoping that will fix the problems with the website.

But when installing IE8 it just hangs at Installing Internet Explorer 8 for Windows XP
And if I try to install it manually, it hangs when installing the updates for IE8.

So looking at these logs, is there anything going wrong with the update process?

Here is the end of ie8_main.log:

00:00.547: Started: 2012/09/15 (Y/M/D) 08:14:31.046 (local)
00:00.719: Time Format in this log: MM:ss.mmm (minutes:seconds.milliseconds)
00:00.781: Command line: c:\cac6f883a91a15abdac3e9\update\iesetup.exe  /wu-silent
00:00.828: INFO:    Checking version for c:\cac6f883a91a15abdac3e9\update\iesetup.exe: 8.0.6001.18702
00:01.047: INFO:    Acquired Package Installer Mutex
00:01.078: INFO:    Operating System: Windows Workstation: 5.1.2600 (Service Pack 3)
00:01.328: ERROR:   Couldn't read value: 'LIPPackage' from [Version] section in update.inf
00:01.359: INFO:    Checking Prerequisites
00:01.391: INFO:    Prerequisites Satisfied: Yes
00:01.484: INFO:    Checking version for C:\Program Files\Internet Explorer\iexplore.exe: 6.0.2900.5512
00:01.516: INFO:    C:\Program Files\Internet Explorer\iexplore.exe version: 6.0.2900.5512
00:01.562: INFO:    Checking if iexplore.exe's current version is between 8.0.6001.0...
00:01.594: INFO:    ...and 8.1.0.0...
00:01.625: INFO:    Maximum version on which to run IEAK branding is: 8.1.0.0...
00:01.656: INFO:    iexplore.exe version check success. Install can proceed.
00:01.703: INFO:    Checking version for C:\Program Files\Internet Explorer\iexplore.exe: 6.0.2900.5512
00:01.719: INFO:    Checking version for C:\WINDOWS\system32\mshtml.dll: 6.0.2900.6266
00:01.750: INFO:    Checking version for C:\WINDOWS\system32\wininet.dll: 6.0.2900.6254
00:01.906: INFO:    EULA not shown in passive or quiet mode.
00:01.984: INFO:    Skip directly to Options page.
00:02.078: INFO:    |PreInstall       >>> CPageProgress::DlgProc: Exiting Phase PH_NONE
00:02.109: INFO:    |PreInstall       >>> CPageProgress::_ChangeState: Original Phase: 0
00:02.141: INFO:    |Initialize       >>> CPageProgress::_UpdateDisplay: Actual Phase: 1
00:02.187: INFO:    |Initialize       >>> >[BEGIN]------------------------------
00:02.219: INFO:    |Initialize       >>> CPageProgress::_UpdateDisplay: Actual Phase: 1
00:02.250: INFO:    |Initialize       >>> SKIP[FALSE]>>Looking for skip clauses
00:02.281: INFO:    |Initialize       >>> SKIP[FALSE]>>Result: RUNNING This Phase
00:02.312: INFO:    |Initialize       >>> Calculating bytes needed to install.
00:02.375: INFO:    |Initialize       >>> Diskspace Required:  151918308
00:02.422: INFO:    |Initialize       >>> Diskspace Available to user: 223816298496
00:02.453: INFO:    WindowsUpdate>>CWindowsUpdateMgr::Initialize: CoCreateInstance.CLSID_UpdateSession: HResult 0x00000000
00:02.484: INFO:    WindowsUpdate>>CWindowsUpdateMgr::Initialize: PutClientApplicationID: HResult 0x00000000
00:02.516: INFO:    WindowsUpdate>>CWindowsUpdateMgr::Initialize: CreateUpdateSearcher: HResult 0x00000000
00:02.547: INFO:    WindowsUpdate>>CWindowsUpdateMgr::Initialize: CreateUpdateDownloader: HResult 0x00000000
00:02.594: INFO:    WindowsUpdate>>CWindowsUpdateMgr::Initialize: CreateUpdateInstaller: HResult 0x00000000
00:02.625: INFO:    WindowsUpdate>>WindowsUpdateMgr::Initialize: State Change: SS_INITIALIZED.
00:02.656: INFO:    |Initialize       >>> CStateInitialize::OnInitialize: Windows Update Manager Initialization Result: 0x00000000
00:02.687: INFO:    |Initialize       >>> CInstallationState::_ExitState: Preparing to Leave State.
00:02.719: INFO:    |Initialize       >>> CInstallationState::_ExitState: Setting Progress 100.
00:02.766: INFO:    |Initialize       >>> CInstallationState::_SetProgress: Post Set Progress Message Succeeded.
00:02.797: INFO:    |Initialize       >>> CInstallationState::_ExitState: Posting Exit Phase Message.
00:02.828: INFO:    |Initialize       >>> CInstallationState::_ExitState: Post Exit Phase Message Succeeded.
00:02.859: INFO:    |Initialize       >>> CPageProgress::DlgProc: Received WM_PR_SETPROGRESS, 64, 0
00:02.891: INFO:    |Initialize       >>> CPageProgress::_UpdateDisplay: Actual Phase: 1
00:02.953: INFO:    |Initialize       >>> CPageProgress::DlgProc: Received WM_PR_EXITPHASE, 0, 0
00:02.984: INFO:    |Initialize       >>> CPageProgress::_UpdateDisplay: Actual Phase: 1
00:03.016: INFO:    |Initialize       >>> <[END]--------------------------------
00:03.047: INFO:    |Initialize       >>> CPageProgress::_ChangeState: Original Phase: 1
00:03.078: INFO:    |Uninstall Prev.  >>> >[BEGIN]------------------------------
00:03.109: INFO:    |Uninstall Prev.  >>> CPageProgress::_UpdateDisplay: Actual Phase: 2
00:03.156: INFO:    |Uninstall Prev.  >>> SKIP[FALSE]>>Looking for skip clauses
00:03.187: INFO:    |Uninstall Prev.  >>> SKIP[FALSE]>> Adding [FALSE] Condition: !_psdStateData->GetIsInitSuccessful()
00:03.219: INFO:    |Uninstall Prev.  >>> SKIP[FALSE]>> Adding [TRUE ] Condition: !g_pApp->GetState()->AreWeDoingUninstall()
00:03.250: INFO:    |Uninstall Prev.  >>> SKIP[TRUE ]>>Result: SKIPPING This Phase
00:03.281: INFO:    |Uninstall Prev.  >>> CInstallationState::_ExitState: Preparing to Leave State.
00:03.312: INFO:    |Uninstall Prev.  >>> CInstallationState::_ExitState: Setting Progress 100.
00:03.344: INFO:    |Uninstall Prev.  >>> CInstallationState::_SetProgress: Post Set Progress Message Succeeded.
00:03.375: INFO:    |Uninstall Prev.  >>> CInstallationState::_ExitState: Posting Exit Phase Message.
00:03.391: INFO:    |Uninstall Prev.  >>> CInstallationState::_ExitState: Post Exit Phase Message Succeeded.
00:03.437: INFO:    |Uninstall Prev.  >>> CPageProgress::DlgProc: Received WM_PR_SETPROGRESS, 64, 0
00:03.469: INFO:    |Uninstall Prev.  >>> CPageProgress::_UpdateDisplay: Actual Phase: 2
00:03.500: INFO:    |Uninstall Prev.  >>> CPageProgress::DlgProc: Received WM_PR_EXITPHASE, 0, 0
00:03.531: INFO:    |Uninstall Prev.  >>> CPageProgress::_UpdateDisplay: Actual Phase: 2
00:03.562: INFO:    |Uninstall Prev.  >>> <[END]--------------------------------
00:03.594: INFO:    |Uninstall Prev.  >>> CPageProgress::_ChangeState: Original Phase: 2
00:03.625: INFO:    |WU Download      >>> >[BEGIN]------------------------------
00:03.656: INFO:    |WU Download      >>> CPageProgress::_UpdateDisplay: Actual Phase: 3
00:03.703: INFO:    |WU Download      >>> SKIP[FALSE]>>Looking for skip clauses
00:03.734: INFO:    |WU Download      >>> SKIP[FALSE]>> Adding [FALSE] Condition: !_psdStateData->GetIsInitSuccessful()
00:03.766: INFO:    |WU Download      >>> SKIP[FALSE]>> Adding [FALSE] Condition: !g_pApp->GetState()->GetOptShouldUpdate()
00:03.781: INFO:    |WU Download      >>> SKIP[FALSE]>> Adding [FALSE] Condition: g_pApp->GetState()->GetOptIEAKMode()==IEAK_BRANDING
00:03.812: INFO:    |WU Download      >>> SKIP[FALSE]>> Adding [FALSE] Condition: g_pApp->GetState()->AreWeDoingUninstall()
00:03.859: INFO:    |WU Download      >>> SKIP[FALSE]>>Result: RUNNING This Phase
00:03.891: INFO:    Setting Windows Update Registry Keys: LookingForUpdates=0x00 - ForcePostUpdateDownload=0x00 - ForcePostUpdateInstall=0x00
00:03.953: INFO:    Setting Windows Update Registry Keys: LookingForUpdates=0x01 - ForcePostUpdateDownload=0x01 - ForcePostUpdateInstall=0x00
00:03.984: INFO:    WindowsUpdate>>Search: Search criteria: 'IsInstalled=0 and Type='Software' and CategoryIDs contains '5312e4f1-6372-442d-aeb2-15f2132c9bd7''
00:04.031: INFO:    |WU Download      >>> Looking for Internet Explorer updates...

And here is the end of the WindowsUpdate.log:

2012-09-15  08:14:16:109    1168     fc AU  #############
2012-09-15  08:14:16:109    1168     fc AU  ## START ##  AU: Search for updates
2012-09-15  08:14:16:109    1168     fc AU  #########
2012-09-15  08:14:16:109    1168     fc AU  <<## SUBMITTED ## AU: Search for updates [CallId = {92AA8321-2BDA-46EA-828E-52D43F3BD58C}]
2012-09-15  08:14:16:140    1168    2c4 Agent     * Added update {B4B9471C-1A5E-4D9C-94EF-84B00592946A}.100 to search result
2012-09-15  08:14:16:140    1168    2c4 Agent     * Added update {7F28CDA0-8249-47CA-BD3C-677813249FE9}.100 to search result
2012-09-15  08:14:16:140    1168    2c4 Agent     * Added update {F1B1A591-BB75-4B1C-9FBD-03EEDB00CC9D}.103 to search result
2012-09-15  08:14:16:140    1168    2c4 Agent     * Added update {6384F8AC-4973-4ED9-BC7F-4644507FB001}.102 to search result
2012-09-15  08:14:16:140    1168    2c4 Agent     * Added update {1C81AA3A-6F53-499D-B519-2A81CFBAA1DB}.102 to search result
2012-09-15  08:14:16:140    1168    2c4 Agent     * Added update {7A25C7EC-3798-4413-A493-57A259D18959}.103 to search result
2012-09-15  08:14:16:140    1168    2c4 Agent     * Added update {D6E99F31-FBF4-4DBF-B408-7D75B282D85B}.100 to search result
2012-09-15  08:14:16:140    1168    2c4 Agent     * Added update {1D45A361-56E7-4A3E-8E9F-AE022D050D13}.101 to search result
2012-09-15  08:14:16:140    1168    2c4 Agent     * Added update {AA38D853-2A3E-4F72-86E9-32663D73DC55}.102 to search result
2012-09-15  08:14:16:140    1168    2c4 Agent     * Added update {3ABE760C-4578-4C84-A1CB-BF1DF019EFE4}.100 to search result
2012-09-15  08:14:16:140    1168    2c4 Agent     * Added update {596ADB47-108D-482D-85BA-A513621434B7}.100 to search result
2012-09-15  08:14:16:140    1168    2c4 Agent     * Added update {0F90F2F5-18A2-412C-AEB9-7F027D6C986D}.104 to search result
2012-09-15  08:14:16:140    1168    2c4 Agent     * Added update {7079BEEB-6120-4AFD-AD07-FB4DFA284FBE}.100 to search result
2012-09-15  08:14:16:140    1168    2c4 Agent   Update {A566B4B1-D44F-46F8-A862-64EFA6684948}.100 is pruned out due to potential supersedence
2012-09-15  08:14:16:140    1168    2c4 Agent   Update {A2E271BC-57AE-44C3-8BFF-919D81299B5D}.100 is pruned out due to potential supersedence
2012-09-15  08:14:16:140    1168    2c4 Agent     * Added update {DE76AB56-5835-46D4-A6B7-1ABED2572F00}.100 to search result
2012-09-15  08:14:16:140    1168    2c4 Agent     * Added update {C683FDC6-3997-4D12-AABB-49AE57031FE6}.100 to search result
2012-09-15  08:14:16:140    1168    2c4 Agent     * Added update {4C5429B5-22FE-4656-9E82-D80C1B99D73E}.100 to search result
2012-09-15  08:14:16:140    1168    2c4 Agent     * Found 16 updates and 69 categories in search; evaluated appl. rules of 1868 out of 3469 deployed entities
2012-09-15  08:14:16:171    1168    2c4 Agent   *********
2012-09-15  08:14:16:171    1168    2c4 Agent   **  END  **  Agent: Finding updates [CallerId = MicrosoftUpdate]
2012-09-15  08:14:16:171    1168    2c4 Agent   *************
2012-09-15  08:14:16:187    1168    2c4 Agent   *************
2012-09-15  08:14:16:187    1168    2c4 Agent   ** START **  Agent: Finding updates [CallerId = AutomaticUpdates]
2012-09-15  08:14:16:187    1168    2c4 Agent   *********
2012-09-15  08:14:16:187    1168    2c4 Agent     * Online = No; Ignore download priority = No
2012-09-15  08:14:16:187    1168    2c4 Agent     * Criteria = "IsHidden=0 and IsInstalled=0 and DeploymentAction='Installation' and IsAssigned=1 or IsHidden=0 and IsPresent=1 and DeploymentAction='Uninstallation' and IsAssigned=1 or IsHidden=0 and IsInstalled=1 and DeploymentAction='Installation' and IsAssigned=1 and RebootRequired=1 or IsHidden=0 and IsInstalled=0 and DeploymentAction='Uninstallation' and IsAssigned=1 and RebootRequired=1"
2012-09-15  08:14:16:187    1168    2c4 Agent     * ServiceID = {7971F918-A847-4430-9279-4A52D1EFE18D} Third party service
2012-09-15  08:14:16:187    1168    2c4 Agent     * Search Scope = {Machine}
2012-09-15  08:14:16:203    4000    59c COMAPI  >>--  RESUMED  -- COMAPI: Search [ClientId = MicrosoftUpdate]
2012-09-15  08:14:16:203    4000    59c COMAPI    - Updates found = 16
2012-09-15  08:14:16:203    4000    59c COMAPI  ---------
2012-09-15  08:14:16:218    4000    59c COMAPI  --  END  --  COMAPI: Search [ClientId = MicrosoftUpdate]
2012-09-15  08:14:16:218    4000    59c COMAPI  -------------
2012-09-15  08:14:20:843    1168    69c AU  AU received install approval from client for 1 updates
2012-09-15  08:14:20:843    1168    69c AU  #############
2012-09-15  08:14:20:843    1168    69c AU  ## START ##  AU: Install updates
2012-09-15  08:14:20:859    1168    69c AU  #########
2012-09-15  08:14:20:859    1168    69c AU    # Initiating manual install
2012-09-15  08:14:20:859    1168    69c AU    # Approved updates = 1
2012-09-15  08:14:20:875    1168    2c4 Agent     * Added update {0F90F2F5-18A2-412C-AEB9-7F027D6C986D}.104 to search result
2012-09-15  08:14:20:875    1168    2c4 Agent     * Found 1 updates and 69 categories in search; evaluated appl. rules of 1326 out of 3469 deployed entities
2012-09-15  08:14:20:875    1168    2c4 Agent   *********
2012-09-15  08:14:20:875    1168    2c4 Agent   **  END  **  Agent: Finding updates [CallerId = AutomaticUpdates]
2012-09-15  08:14:20:875    1168    2c4 Agent   *************
2012-09-15  08:14:20:875    1168    69c AU  <<## SUBMITTED ## AU: Install updates / installing updates [CallId = {BB25B2FA-1DA6-46EF-BBAD-93AEC822BD21}]
2012-09-15  08:14:20:890    1168    eac AU  >>##  RESUMED  ## AU: Search for updates [CallId = {92AA8321-2BDA-46EA-828E-52D43F3BD58C}]
2012-09-15  08:14:20:890    1168    eac AU    # 1 updates detected
2012-09-15  08:14:20:890    1168    280 Agent   *************
2012-09-15  08:14:20:890    1168    280 Agent   ** START **  Agent: Installing updates [CallerId = AutomaticUpdates]
2012-09-15  08:14:20:890    1168    280 Agent   *********
2012-09-15  08:14:20:890    1168    280 Agent     * Updates to install = 1
2012-09-15  08:14:20:890    1168    eac AU  #########
2012-09-15  08:14:20:890    1168    eac AU  ##  END  ##  AU: Search for updates [CallId = {92AA8321-2BDA-46EA-828E-52D43F3BD58C}]
2012-09-15  08:14:20:890    1168    eac AU  #############
2012-09-15  08:14:20:890    1168    eac AU  Featured notifications is disabled.
2012-09-15  08:14:20:906    1168    2c4 Report  REPORT EVENT: {F352ECAD-2C8C-4F9A-A225-333B5018F1F0}    2012-09-15 08:13:23:234-0500    1   188 102 {00000000-0000-0000-0000-000000000000}  0   0   AutomaticUpdates    Success Content Install Installation Ready: The following updates are downloaded and ready for installation. This computer is currently scheduled to install these updates on Sunday, September 16, 2012 at 3:00 AM:  - Internet Explorer 8 for Windows XP
2012-09-15  08:14:20:906    1168    2c4 Report  REPORT EVENT: {707D1D6E-BA62-438F-B704-0CC083B1FB6C}    2012-09-15 08:13:23:234-0500    1   202 102 {00000000-0000-0000-0000-000000000000}  0   0   AutomaticUpdates    Success Content Install Reboot completed.
2012-09-15  08:14:20:906    1168    2c4 Report  REPORT EVENT: {65C04CE5-D046-4B6F-92F1-E2DF36730338}    2012-09-15 08:14:16:156-0500    1   147 101 {00000000-0000-0000-0000-000000000000}  0   0   MicrosoftUpdate Success Software Synchronization    Windows Update Client successfully detected 16 updates.
2012-09-15  08:14:20:921    1168    280 Agent     *   Title = Internet Explorer 8 for Windows XP
2012-09-15  08:14:20:921    1168    280 Agent     *   UpdateId = {0F90F2F5-18A2-412C-AEB9-7F027D6C986D}.104
2012-09-15  08:14:20:921    1168    280 Agent     *     Bundles 2 updates:
2012-09-15  08:14:20:921    1168    280 Agent     *       {114743B0-0F07-4000-8C51-BE808D819516}.104
2012-09-15  08:14:20:921    1168    280 Agent     *       {81B41B2D-E98D-4DFE-9CB7-E88AE50E9B42}.104
2012-09-15  08:14:25:078    1168    280 Handler Attempting to create remote handler process as RAY\Ray in session 0
2012-09-15  08:14:25:250    1168    280 DnldMgr Preparing update for install, updateId = {114743B0-0F07-4000-8C51-BE808D819516}.104.
2012-09-15  08:14:27:453    1256    528 Misc    ===========  Logging initialized (build: 7.6.7600.256, tz: -0500)  ===========
2012-09-15  08:14:27:453    1256    528 Misc      = Process: C:\WINDOWS\system32\wuauclt.exe
2012-09-15  08:14:27:453    1256    528 Misc      = Module: C:\WINDOWS\system32\wuaueng.dll
2012-09-15  08:14:27:453    1256    528 Handler :::::::::::::
2012-09-15  08:14:27:453    1256    528 Handler :: START ::  Handler: Command Line Install
2012-09-15  08:14:27:453    1256    528 Handler :::::::::
2012-09-15  08:14:27:453    1256    528 Handler   : Updates to install = 1
2012-09-15  08:14:35:062     676    684 Misc    ===========  Logging initialized (build: 7.6.7600.256, tz: -0500)  ===========
2012-09-15  08:14:35:062     676    684 Misc      = Process: c:\cac6f883a91a15abdac3e9\update\iesetup.exe
2012-09-15  08:14:35:062     676    684 Misc      = Module: C:\WINDOWS\system32\wuapi.dll
2012-09-15  08:14:35:062     676    684 COMAPI  -------------
2012-09-15  08:14:35:062     676    684 COMAPI  -- START --  COMAPI: Search [ClientId = Windows Internet Explorer 8 Setup Utility]
2012-09-15  08:14:35:062     676    684 COMAPI  ---------
2012-09-15  08:14:35:078    1168    2c4 Agent   *************
2012-09-15  08:14:35:078    1168    2c4 Agent   ** START **  Agent: Finding updates [CallerId = Windows Internet Explorer 8 Setup Utility]
2012-09-15  08:14:35:078    1168    2c4 Agent   *********
2012-09-15  08:14:35:078    1168    2c4 Agent     * Online = Yes; Ignore download priority = No
2012-09-15  08:14:35:078    1168    2c4 Agent     * Criteria = "IsInstalled=0 and Type='Software' and CategoryIDs contains '5312e4f1-6372-442d-aeb2-15f2132c9bd7'"
2012-09-15  08:14:35:078    1168    2c4 Agent     * ServiceID = {00000000-0000-0000-0000-000000000000} Third party service
2012-09-15  08:14:35:078    1168    2c4 Agent     * Search Scope = {Machine}
2012-09-15  08:14:35:078     676    684 COMAPI  <<-- SUBMITTED -- COMAPI: Search [ClientId = Windows Internet Explorer 8 Setup Utility]
2012-09-15  08:14:35:078    1168    2c4 Misc    Validating signature for C:\WINDOWS\SoftwareDistribution\WuRedir\9482F4B4-E343-43B6-B170-9A65BC822C77\muv4wuredir.cab:
2012-09-15  08:14:35:093    1168    2c4 Misc     Microsoft signed: Yes
2012-09-15  08:14:35:156    1168    2c4 Misc    WARNING: WinHttp: SendRequestToServerForFileInformation failed with 0x80190194
2012-09-15  08:14:35:156    1168    2c4 Misc    WARNING: WinHttp: ShouldFileBeDownloaded failed with 0x80190194
2012-09-15  08:14:35:156    1168    2c4 Misc    WARNING: DownloadFileInternal failed for http://download.windowsupdate.com/v9/1/windowsupdate/redir/muv4wuredir.cab: error 0x80190194
2012-09-15  08:14:35:156    1168    2c4 Misc    Validating signature for C:\WINDOWS\SoftwareDistribution\WuRedir\9482F4B4-E343-43B6-B170-9A65BC822C77\muv4wuredir.cab:
2012-09-15  08:14:35:171    1168    2c4 Misc     Microsoft signed: Yes
2012-09-15  08:14:35:312    1168    2c4 Misc    WARNING: WinHttp: SendRequestToServerForFileInformation failed with 0x80190194
2012-09-15  08:14:35:312    1168    2c4 Misc    WARNING: WinHttp: ShouldFileBeDownloaded failed with 0x80190194
2012-09-15  08:14:35:312    1168    2c4 Misc    WARNING: DownloadFileInternal failed for http://download.microsoft.com/v9/1/windowsupdate/redir/muv4wuredir.cab: error 0x80190194
2012-09-15  08:14:35:312    1168    2c4 Misc    Validating signature for C:\WINDOWS\SoftwareDistribution\WuRedir\9482F4B4-E343-43B6-B170-9A65BC822C77\muv4wuredir.cab:
2012-09-15  08:14:35:312    1168    2c4 Misc     Microsoft signed: Yes
2012-09-15  08:14:35:406    1168    2c4 Misc    Validating signature for C:\WINDOWS\SoftwareDistribution\WuRedir\9482F4B4-E343-43B6-B170-9A65BC822C77\muv4wuredir.cab:
2012-09-15  08:14:35:421    1168    2c4 Misc     Microsoft signed: Yes
2012-09-15  08:14:35:437    1168    2c4 Agent   Checking for updated auth cab for service 7971f918-a847-4430-9279-4a52d1efe18d at http://download.windowsupdate.com/v9/1/microsoftupdate/redir/muauth.cab
2012-09-15  08:14:35:437    1168    2c4 Misc    Validating signature for C:\WINDOWS\SoftwareDistribution\AuthCabs\authcab.cab:
2012-09-15  08:14:35:437    1168    2c4 Misc     Microsoft signed: Yes
2012-09-15  08:14:35:578    1168    2c4 Misc    Validating signature for C:\WINDOWS\SoftwareDistribution\AuthCabs\authcab.cab:
2012-09-15  08:14:35:593    1168    2c4 Misc     Microsoft signed: Yes
2012-09-15  08:14:35:687    1168    2c4 Misc    Validating signature for C:\WINDOWS\SoftwareDistribution\WuRedir\7971F918-A847-4430-9279-4A52D1EFE18D\muv4muredir.cab:
2012-09-15  08:14:35:718    1168    2c4 Misc     Microsoft signed: Yes
2012-09-15  08:14:35:765    1168    2c4 Misc    Validating signature for C:\WINDOWS\SoftwareDistribution\WuRedir\7971F918-A847-4430-9279-4A52D1EFE18D\muv4muredir.cab:
2012-09-15  08:14:35:781    1168    2c4 Misc     Microsoft signed: Yes
2012-09-15  08:14:35:781    1168    2c4 PT  +++++++++++  PT: Starting category scan  +++++++++++
2012-09-15  08:14:35:781    1168    2c4 PT    + ServiceId = {7971F918-A847-4430-9279-4A52D1EFE18D}, Server URL = https://www.update.microsoft.com/v6/ClientWebService/client.asmx
2012-09-15  08:14:35:906    1168    2c4 Misc    Validating signature for C:\WINDOWS\SoftwareDistribution\WuRedir\7971F918-A847-4430-9279-4A52D1EFE18D\muv4muredir.cab:
2012-09-15  08:14:35:921    1168    2c4 Misc     Microsoft signed: Yes
2012-09-15  08:14:35:968    1168    2c4 Misc    Validating signature for C:\WINDOWS\SoftwareDistribution\WuRedir\7971F918-A847-4430-9279-4A52D1EFE18D\muv4muredir.cab:
2012-09-15  08:14:35:984    1168    2c4 Misc     Microsoft signed: Yes
2012-09-15  08:14:35:984    1168    2c4 PT  +++++++++++  PT: Synchronizing server updates  +++++++++++
2012-09-15  08:14:35:984    1168    2c4 PT    + ServiceId = {7971F918-A847-4430-9279-4A52D1EFE18D}, Server URL = https://www.update.microsoft.com/v6/ClientWebService/client.asmx
2012-09-15  08:14:37:250    1168    2c4 Misc    Validating signature for C:\WINDOWS\SoftwareDistribution\WuRedir\7971F918-A847-4430-9279-4A52D1EFE18D\muv4muredir.cab:
2012-09-15  08:14:37:265    1168    2c4 Misc     Microsoft signed: Yes
2012-09-15  08:14:37:312    1168    2c4 Misc    Validating signature for C:\WINDOWS\SoftwareDistribution\WuRedir\7971F918-A847-4430-9279-4A52D1EFE18D\muv4muredir.cab:
2012-09-15  08:14:37:328    1168    2c4 Misc     Microsoft signed: Yes
2012-09-15  08:14:37:328    1168    2c4 PT  +++++++++++  PT: Synchronizing extended update info  +++++++++++
2012-09-15  08:14:37:328    1168    2c4 PT    + ServiceId = {7971F918-A847-4430-9279-4A52D1EFE18D}, Server URL = https://www.update.microsoft.com/v6/ClientWebService/client.asmx
2012-09-15  08:14:37:453     784    314 DtaStor WARNING: Attempted to add URL http://download.windowsupdate.com/msdownload/update/software/dflt/2010/06/3888874_6c6699387d7465bc17c02cc31a660b216427fc78.cab for file bGaZOH10ZbwXwCzDGmYLIWQn/Hg= when file has not been previously added to the datastore
2012-09-15  08:14:37:468     784    314 DtaStor WARNING: Attempted to add URL http://download.windowsupdate.com/msdownload/update/software/dflt/2011/12/4876484_606d98885a70abb9e5e7f3821682cf5541b17c27.cab for file YG2YiFpwq7nl5/OCFoLPVUGxfCc= when file has not been previously added to the datastore
2012-09-15  08:14:37:468     784    314 DtaStor WARNING: Attempted to add URL http://download.windowsupdate.com/msdownload/update/software/dflt/2012/08/5179550_0e825c9da8f36ff2addcbbf4089e12bff764e0a0.cab for file DoJcnajzb/Kt3Lv0CJ4Sv/dk4KA= when file has not been previously added to the datastore
2012-09-15  08:14:37:937    1168    2c4 Agent     * Added update {551EF226-28CF-44D9-B318-4959C2B73B26}.100 to search result
2012-09-15  08:14:37:937    1168    2c4 Agent     * Added update {955266A7-6210-4C18-BAEF-0E8244D975A9}.100 to search result
2012-09-15  08:14:37:937    1168    2c4 Agent     * Added update {797D3C3F-CFD2-4D26-BB52-BE038205C7C4}.105 to search result
2012-09-15  08:14:37:937    1168    2c4 Agent     * Added update {EDB28194-3635-480E-A069-1D1984CCB2AB}.102 to search result
2012-09-15  08:14:37:937    1168    2c4 Agent     * Found 4 updates and 5 categories in search; evaluated appl. rules of 52 out of 65 deployed entities
2012-09-15  08:14:37:937    1168    2c4 Agent   *********
2012-09-15  08:14:37:937    1168    2c4 Agent   **  END  **  Agent: Finding updates [CallerId = Windows Internet Explorer 8 Setup Utility]
2012-09-15  08:14:37:937    1168    2c4 Agent   *************
2012-09-15  08:14:37:953     676    8cc COMAPI  >>--  RESUMED  -- COMAPI: Search [ClientId = Windows Internet Explorer 8 Setup Utility]
2012-09-15  08:14:37:953     676    8cc COMAPI    - Updates found = 4
2012-09-15  08:14:37:953     676    8cc COMAPI  ---------
2012-09-15  08:14:37:953     676    8cc COMAPI  --  END  --  COMAPI: Search [ClientId = Windows Internet Explorer 8 Setup Utility]
2012-09-15  08:14:37:953     676    8cc COMAPI  -------------
2012-09-15  08:14:42:937    1168    2c4 Report  REPORT EVENT: {88008109-CF47-404E-940D-6C21A85DFF64}    2012-09-15 08:14:37:937-0500    1   147 101 {00000000-0000-0000-0000-000000000000}  0   0   Windows Internet Explorer 8 Set Success Software Synchronization    Windows Update Client successfully detected 4 updates.

I could upload the entire WindowsUpdate.log file to dropbox if required.

Download and install using this package, when the installer options come up to download updates, opt out and continue with installation.

When installation is complete restart the PC and do a manual windows update to get all the security updates for IE8.