Re: our fix
A few of our IT staff spent an hour and a half with Bangladesh only to have them insist that we re-register a bunch of DLL's, then *rename* them. Not wanting to second guess people who are supposed to be experts in their own software, we deployed their fix. Windows Update broke entirely on the machines we pushed the fix to. Lovely.
So, I wrote an NSIS script that would undo the MS blunder where appropriate, then apply the steps in the correct sequence and apply hotfix 927891. If you're interested in leeching my code, I've pasted it at http://paste.biz/paste-2188.html -- feel free to salt to taste and abuse as needed.