Tip: Repacking App and the SoftwareDistribution folder
Figured I'd post this one up as a tip as I've just discovered this little beauty with Windows update failing on a machine.
Turns out that when I did a repack using DAMSIS (scriptlogic MSI tool) of a legacy application, I left in the SoftwareDistribution folder and data it had gleaned during the recorded install.
For anyone who doesn't know, this folder is used by Windows/Microsoft Update to store cabs, logs for installs, etc...
Anyway, long story short... after I repaired the application today, using the MSI, it broke the SoftwareDistribution folder contents and I ended up with an error code: 0x80246001 whilst trying to use WinUpdates.
If you've found this out the hard way, a "how to" for an easy fix is here:
... as I said though the ultimate fix may be to clean up any MSI installers which may have that folder and any data within it that breaks things.