Windows Server - Windows Server 2003 SP2 Update - Access Denied

I am about at the end of my rope. We have a Windows Server 2003 that will not install Microsoft's SP2 update. It give the error Access Denied: 0x80070005

I have included the part of the log where this would occur (note it is right after the Inventory: Installer returns )x5 (5):

2009-02-11 10:02:39:223 1212 1bb4 DnldMgr ***********  DnldMgr: New download job [UpdateId = {EEA8B1F9-19A7-45D4-A5F2-FBA8DCF44F71}.100]  ***********
2009-02-11 10:02:39:223 1212 1bb4 DnldMgr   * Queueing update for download handler request generation.
2009-02-11 10:02:39:223 1212 1bb4 DnldMgr Generating download request for update {EEA8B1F9-19A7-45D4-A5F2-FBA8DCF44F71}.100
2009-02-11 10:02:39:973 1212 1bb4 Handler Windows Patch download for UpdateId = {EEA8B1F9-19A7-45D4-A5F2-FBA8DCF44F71}: selected action is download express (delta).
2009-02-11 10:02:41:051 1212 1bb4 Handler Updateci: WinSEUpdateHandler::_Inventory: Installer returned 0x5 (5)
2009-02-11 10:02:41:051 1212 1bb4 Handler FATAL: UH: 0x80070005: Inventory failed in CUHWindowsPatchHandler::GetNextRequiredFiles
2009-02-11 10:02:41:051 1212 1bb4 Handler FATAL: UH: 0x80070005: GetNextRequiredFiles failed in CUHWindowsPatchHandler::GetRequiredFilesForSandboxState
2009-02-11 10:02:41:051 1212 1bb4 Handler FATAL: UH: 0x80070005: GetRequiredFilesForSandboxState failed in CUHWindowsPatchHandler::GenerateDownloadRequest
2009-02-11 10:02:41:051 1212 1bb4 DnldMgr FATAL: DM:CAgentDownloadManager::GenerateAllDownloadRequests: GenerateDownloadRequest failed with 0x80070005.
2009-02-11 10:02:41:051 1212 1bb4 DnldMgr Error 0x80070005 occurred while downloading update; notifying dependent calls.

I am running under the admininstrator account.

I have tried so many fixes, and can't get anything to work.  We run Symantec Endpoint Protection, but I had disabled the services and that still didn't work. I also tried to fix all the permissions, but could not find any problems. I reset the permissions to the windows defaults and it still didn't work (however, it did make sharepoint services not work, so I had to change some of the permission back.)

I also tried looking at regmon & filemon and could not see anything that would give me more information. There was no error for access being denied in any of those logs. I am kind of at a loss as to what to do right now. If anyone has any suggestions, that would be greatly appreciated.

When you create a scheduled task by using Task Scheduler on a Microsoft Windows XP-based computer after you install security update 841873, you may receive an error message that is similar to the following: For more information security update 841873, click the following article number to view the article in the Microsoft Knowledge Base: Note Security update 841873 was issued in security bulletin MS04-022.

source from:: http://support.microsoft.com/kb/904423

http://forums.techguy.org/windows-vista-7/720996-solved-access-denied-0x80070005.html

Download the entire SP2 package from here and SAVE it:

http://www.microsoft.com/downloads/details.aspx?FamilyId=049C9DBE-3B8E-4F30-8245-9E368D3CDB5A&displaylang=en

Or, order the CD and pay for shipping only:

http://www.microsoft.com/windowsxp/downloads/updates/sp2/cdorder/en_us/default.mspx

Read this prior to installing SP2 to save yourself a ton of grief:

Preparing for installation

http://winhlp.com/WxSP2.htm#Preparing_for_installation

0x80070005 - Permissions issue. You can reset registry and file ACLs to

their Default state by following the directions here:

http://blogs.msdn.com/astebner/archive/2006/09/04/739820.aspx

or

How to reset security settings back to the defaults

http://support.microsoft.com/kb/313222

 http://forums.techarena.in/windows-update/1105330.htm

http://www.neowin.net/forum/index.php?showtopic=568053

I have tried resseting the registry secturity setting to default with secedit and that did not work (it changed the registry settings but I still could not install)

I also tried to use Aaron Stebner's instructions for the SubInACL tool. Again, it ran through, however, I still could not install the updates.  It did have 2 errors.  It could not change the permissions on 2 files in the TEMP folder (LB2A and LB2B I believe). I went to try and delete these files, but could not, as they appreaed to be in use.

When I analyse the issue with REGMON (which I ran again this morning) I think this issue may have to do with encryption keys? Here is a sample of the update log file again:

2009-02-12 08:50:50:517 1196 1cfc Handler Updateci: WinSEUpdateHandler::_Inventory: Installer returned 0x5 (5)
2009-02-12 08:50:50:517 1196 1cfc Handler FATAL: UH: 0x80070005: Inventory failed in CUHWindowsPatchHandler::GetNextRequiredFiles
2009-02-12 08:50:50:517 1196 1cfc Handler FATAL: UH: 0x80070005: GetNextRequiredFiles failed in CUHWindowsPatchHandler::GetRequiredFilesForSandboxState
2009-02-12 08:50:50:517 1196 1cfc Handler FATAL: UH: 0x80070005: GetRequiredFilesForSandboxState failed in CUHWindowsPatchHandler::GenerateDownloadRequest
2009-02-12 08:50:50:517 1196 1cfc DnldMgr FATAL: DM:CAgentDownloadManager::GenerateAllDownloadRequests: GenerateDownloadRequest failed with 0x80070005.
2009-02-12 08:50:50:517 1196 1cfc DnldMgr Error 0x80070005 occurred while downloading update; notifying dependent calls.

Now, here is what REGMON recorded just before/at that same time:

3636 8:50:50.220 AM wmiprvse.exe:4088 QueryValue HKLM\SOFTWARE\Microsoft\Windows NT\CurrentVersion\Perflib\Disable Performance Counters NOT FOUND  
3637 8:50:50.236 AM update.exe:6468 OpenKey HKLM\Software\Microsoft\Windows\CurrentVersion\SideBySide\AssemblyStorageRoots NOT FOUND  
3638 8:50:50.236 AM svchost.exe:1196 OpenKey HKCU\Software\Classes NOT FOUND  
3644 8:50:50.392 AM update.exe:6468 OpenKey HKLM\SYSTEM\CurrentControlSet\Control\Windows REPARSE  
3645 8:50:50.392 AM update.exe:6468 QueryValue HKLM\SYSTEM\ControlSet003\Control\Windows\CSDVersion NOT FOUND  
3651 8:50:50.392 AM lsass.exe:564 QueryValue HKLM\SECURITY\Policy\SecDesc\(Default) BUFFER OVERFLOW  
3656 8:50:50.408 AM update.exe:6468 OpenKey HKLM\Software\Microsoft\Cryptography\Offload NOT FOUND  
3661 8:50:50.423 AM update.exe:6468 OpenKey HKLM\Software\Microsoft\Cryptography\OID\EncodingType 0\CryptDllDecodeObjectEx NOT FOUND  
3664 8:50:50.423 AM lsass.exe:564 QueryValue HKLM\SECURITY\Policy\SecDesc\(Default) BUFFER OVERFLOW  
3665 8:50:50.423 AM update.exe:6468 EnumerateKey HKLM\Software\Microsoft\Cryptography\OID\EncodingType 1\CryptDllDecodeObjectEx NO MORE ENTRIES  
3666 8:50:50.423 AM update.exe:6468 EnumerateKey HKLM\Software\Microsoft\Cryptography\OID NO MORE ENTRIES  
3667 8:50:50.423 AM update.exe:6468 OpenKey HKLM\Software\Microsoft\Cryptography\OID\EncodingType 0\CryptDllDecodeObject NOT FOUND  
3668 8:50:50.423 AM update.exe:6468 EnumerateKey HKLM\Software\Microsoft\Cryptography\OID\EncodingType 1\CryptDllDecodeObject NO MORE ENTRIES  
3669 8:50:50.423 AM update.exe:6468 EnumerateKey HKLM\Software\Microsoft\Cryptography\OID NO MORE ENTRIES  
3670 8:50:50.517 AM update.exe:6468 QueryValue HKLM\Software\Microsoft\Windows NT\CurrentVersion\GRE_Initialize\DisableMetaFiles NOT FOUND  

I wonder if it is something to do with not being able to decode an object?

However, I did do a search with Microsoft's tool and it did not find any encoded files. Any help would be appreciated.