[PinkFreud]

Tested 3 times once on "live" system twice on VM's--last test was with a "fresh" download . KB955759 downloaded via X's UDC batch file & integrated w/nLite. All 3 times WU offered KB955759, was installed "successfully" & subsequently re-offered via WU. Tried manual install, again "successful" & re-offered... tried the M$ Fixit described in KB954157, same result. Finally hid the update to resolve. This update was never a problem before and I'm wondering if there's some file conflict with any of the February patches... researching such conflicts is way beyond my limited capabilities but I am willing to do any required "leg work" if anyone has a suggestion. Attd Last INI and KB955759 install log.
Edit: Attachments removed

Side note to "X": Hyperlink to WindowsXP-KB2778344-x86-ENU.exe (Feb changelog) on your XP Post SP3 High-Priority Updates page actually links to KB2779030, the superseded update it replaces.
Edit to add: Found my answer...maybe This MSFN thread led me to this thread @RyanVM forum:

Quote

5eraph Posted: Fri May 07, 2010 6:09 am : Make certain you are not using nLite to remove anything related to Application Compatibility. The necessary files for KB955759 are aclayers.dll and sysmain.sdb.

2nd edit: Unchecking (keeping) Application Compatibility patch resolves the issue. I hope this info is useful to anyone who may encounter the same problem & stumble across this post.

This post has been edited by PinkFreud: 05 March 2013 - 09:12 PM

[-X-]

Glad you got it sorted. That's why I don't remove anything anymore. I even tell it to leave clock.avi lol.

Thanks for catching that mistake on my page!

[PinkFreud]

-X-, on 05 March 2013 - 11:47 AM, said:

...That's why I don't remove anything anymore. I even tell it to leave clock.avi lol.

Thanks for catching that mistake on my page!

Not even Tour? Do you at least turn Oobe off? You're welcome btw.

[-X-]

Yeah, I turn off oobe.