I just had the pleasure of fixing a computer with an update problem, it would not install KB936181 no matter what was done..
I found this guide on some page;
How to fix the KB936181 Windows Update problem: Click Start -> Run, type cmd and click OK
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Type ren %windir%\System32\msxml4.dll msxml4.old, and press Enter (Ignore any errors stating that the file could not be found)! Next, type exit, and press Enter
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Now, simply visit the official Microsoft KB93618 download link and manually download and install the update
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Restart your computer and if all goes well, your KB936181 update issues should be history.
This sounded quite sane, so I decided to try it… However after renaming the file I tried to run the update and got the three options 1) Modify 2) Repair 3) Remove, and I decided to go for the remove option, after this I reran the advertisement from the update server (SCCM WSUS) and viola it installed without a glitch.
As the user said, what a stupid update 😀 I could not agree more..