I had the same issue. Instead of running update through the 'Add/Remove Programs' Control Panel Applet, do a 'run as administrator' on the setup application itself. Setup will see the product is installed and give you the option to repair/update.Frank C. Drewes III - Senior Consultant: Oxford Computer Group

I am troubleshooting a problem related to the installation of Update Rollup 2 for the FIM Service and Portal (the Synchronization Service update went fine). When I try to change the Service and Portal configuration through Add/Remove Programs by right-clicking and selecting "Change", I get a message that says "Administrator privileges are required to run installer.". The thing is, I am a local administrator of the server (as well as domain administrator). The same message appears when I try to change the FIM Synchronization Service. This is only happening for the two Forefront applications. Other applications respond as expected. Has anyone seen this before? This seems extremely unusual to me. Is the message perhaps referring to Administrative privileges elsewhere, beside the OS? 

Thanks for the suggestion, Carol. Yes, it is happening with the same account that I used to install FIM. I actually had a chance to talk to MS and they suggested to do what Frank suggests (which is to run it from the installation media, since it gives you a chance to change the configuration). Apparently it is a known issue. Sure enough, that did the trick.

Thanks, Frank. Your suggestion did the trick. Microsoft recommended to do the same thing. They are aware of it as well.

I had the same issue. Instead of running update through the 'Add/Remove Programs' Control Panel Applet, do a 'run as administrator' on the setup application itself. Setup will see the product is installed and give you the option to repair/update.Frank C. Drewes III - Senior Consultant: Oxford Computer Group

YYep - There's no option like 'run as administrator' on the control panel applet. I've seen that before with other apps too.Frank C. Drewes III - Senior Consultant: Oxford Computer Group

Did you originally install using this same account? I find I get odd problems if I run changes and updates with any account other than the Portal administrator account - ie the one used to do the initial install. http://www.wapshere.com/missmiis