On 2 of my W2008R2 64 servers, KB967723 failed installation. It seems from user forums this is a major issue, and the recommended MS solution is to restart Windows and run as a standalone upgrade. Personally I think that KB967723 is the cause of corrupting the Windows installation and MS needs to recall KB967723 and fix the problem.

Hi, Thank you for the feedback. I understand the inconvenience this issue has caused to you. Please understand Microsoft releases security updates to fix known issues and increase the stability and security of Windows, and we have tested as much of the software environment as we could to improve the performance of security updates. However, we cannot guarantee that updates can install perfectly in all computers because every computer has different software and hardware environments. Thank you for your understanding. Since you can install KB967723 on your computer manually by using the standalone package, I suggest safely ignoring this issue. If you have additional concerns or feedback on this issue, please submit your feedback from the following site: http://www.microsoft.com/mscorp/execmail/feedback.mspx Tim Quan - MSFT

Apparently the Windows update was downloading the 32 bit version, because I was able to manually install the 64 bit without the issue arising.