Install of KB2862966 and error 80070426

Question

Hello,
I am having a problem with one windows 7 x 64 machine that refuses to install windows update KB2862966 giving and error code of 80070426.
We have 20 workstations of which 14 are windows 7 x64 attached to an SBS 2008 server running WSUS 3 SP2. The other 13 windows 7 x64 machines have installed the updates successfully. 
This machine has installed all updates prior to and since this issues occurred. 
This is one of four Acer machines that were purchased at the same time with identical hardware. All of which have had the same updates from the server.
I have tried the running the update manually with a local account with administrator access with the same issue.
I have run the command "sfc /scannow" from a CMD running as administrator which found no problems.
I have run the "windows update readiness tool" to no effect.
The workstation is running without issues and all applications: Internet Explorer, Office 2007 and PDF are working fine. 
Does anyone have any ideas on what this error actually means and how to solve it. 
Regards Andy

Answer 1

Hi,
We can try to repair this file manually, please find on your Windows 7 installation disc and follow these steps to do so:
Take ownership and replace system files:
 1. Take administrative ownership of the corrupted system file. To do this, at an elevated command prompt, copy and then paste (or type) the following command, and then press ENTER:
 takeown /f Path_And_File_Name
 Note The Path_And_File_Name placeholder represents the path and the file name of the corrupted file. For example, type takeown /f C:\windows\system32\jscript.dll.
 2. Grant administrators full access to the corrupted system file. To do this, copy and paste (or type) the following command, and then press ENTER:
 icacls Path_And_File_Name /GRANT ADMINISTRATORS:F
 Note The Path_And_File_Name placeholder represents the path and the file name of the corrupted file. For example, type icacls C:\windows\system32\jscript.dll /grant administrators:F.
 3. Replace the corrupted system file with a known good copy of the file. To do this, copy and paste (or type) the following command, and then press ENTER:
 Copy Source_File Destination
 Note The Source_File placeholder represents the path and file name of the known good copy of the file on your computer, and the Destination placeholder represents the path and file name of the corrupted file. For example, type copy E:\temp\jscript.dll
C:\windows\system32\jscript.dll. 
If we still fail to get this service worked, we may need to repair the registry key by export the good one and import it into this computer.
The registry entry for Cryptographic services is located at:
HKEY_LOCAL_MACHINE\SYSTEM\CurrentControlSet\Services\CryptSvc
Hope these could be helpful. 
Kate Li
TechNet Community Support