Nicolous just posted a solution that worked for me. Hope
it works for you too.
To correct your problem with Cryptographic Services:
Step #1
Perform a Disk Cleanup:
Go to Start > Programs > Accessories > System Tools > Disk
Cleanup
Step #2:
Go to Start > Run and type: MSCONFIG , and hit enter.
Select "Normal Startup", click "apply" and reboot.
Step #3:
1. Start the Administrative Tools utility in your
Control Panel.
2. Double-click Services.
3. Right-click "Cryptographic Services", and then click
Properties.
4. Click "Automatic" for Startup type, and then click
Start.
5. Try installing the Updates again. If the problem
persists, go to Step 6.
6. Click Start, and then click Run.
7. In the Open box, type: CMD , and then click OK.
8. At the Command Prompt, type (or Copy & Paste) the
following commands,
each individually, pressing ENTER after each line:
net stop cryptsvc
ren %systemroot%\system32\catroot2 oldcatroot2
net start cryptsvc
Type EXIT to close the Command Prompt, and
install the patch:
Blaster Worm: Critical Security Patch for Windows XP (32-
bit version - direct download)
http://microsoft.com/downloads/details.aspx?
FamilyId=2354406C-C5B6-44AC-9532-
3DE40F69C074&displaylang=en
If installation continues to fail, try this additional
procedure:
Click Start > Run and type: CMD , hit enter.
In the Command Prompt window, type the following commands,
pressing ENTER after each line:
net stop cryptsvc
net start cryptsvc
regsvr32 softpub.dll
regsvr32 wintrust.dll
regsvr32 initpki.dll
regsvr32 dssenh.dll
regsvr32 rsaenh.dll
regsvr32 cryptdlg.dll
EXIT
Try installing the patch once again.
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