Initially I thought the installation failure is due to the corruption of either the MSI software update registration or the .NET Framework installed on the server.
I tried the following methods mentioned in the Microsoft KB articles (i.e. KB922377, KB976982) but were not successful :
1. Manually remove the .NET Framework, and then reinstall the .NET Framework
2. Remove the .NET Framework by using the Installation Cleanup Utility and then reinstall the .NET Framework
3. Fix the MSI software update registration corruption issue by using Microsoft Fix it 50123
A detailed look at the Windows Application Event log after each installation of the Microsoft .NET Framework 3.5 SP1 revealed the following entries:
Event ID 10005 - Product: Microsoft
.NET Framework 2.0 Service Pack 2 -- The installer has encountered an
unexpected error installing this package. This may indicate a problem with this
package. The error code is 2318. The arguments are:
C:\WINDOWS\PCHEALTH\ERRORREP\QSIGNOFF\30E8DF.cab, ,
Event ID 1023 - Product: Microsoft
.NET Framework 2.0 Service Pack 2 - Update '.NET Framework CLR' could not be
installed. Error code 1603. Additional information is available in the log file
C:\DOCUME~1\kandti01\LOCALS~1\Temp\dd_NET_Framework20_Setup5306.txt.
Event ID 1023 - Product: Microsoft
.NET Framework 2.0 Service Pack 2 - Update '.NET Framework CA' could not be
installed. Error code 1603. Additional information is available in the log file
C:\DOCUME~1\kandti01\LOCALS~1\Temp\dd_NET_Framework20_Setup5306.txt.
Event ID 1023 - Product: Microsoft
.NET Framework 2.0 Service Pack 2 - Update '.NET Framework CRT' could not be
installed. Error code 1603. Additional information is available in the log file
C:\DOCUME~1\kandti01\LOCALS~1\Temp\dd_NET_Framework20_Setup5306.txt.
Event ID 1023 - Product: Microsoft
.NET Framework 2.0 Service Pack 2 - Update '.NET Framework PreXP' could not be
installed. Error code 1603. Additional information is available in the log file
C:\DOCUME~1\kandti01\LOCALS~1\Temp\dd_NET_Framework20_Setup5306.txt.
Event ID 1023 - Product: Microsoft
.NET Framework 2.0 Service Pack 2 - Update 'Dr. Watson' could not be installed.
Error code 1603. Additional information is available in the log file
C:\DOCUME~1\kandti01\LOCALS~1\Temp\dd_NET_Framework20_Setup5306.txt.
Event ID 1023 - Product: Microsoft
.NET Framework 2.0 Service Pack 2 - Update '.NET Framework 1' could not be
installed. Error code 1603. Additional information is available in the log file
C:\DOCUME~1\kandti01\LOCALS~1\Temp\dd_NET_Framework20_Setup5306.txt.
Event ID 1023 - Product: Microsoft
.NET Framework 2.0 Service Pack 2 - Update '.NET Framework 2' could not be
installed. Error code 1603. Additional information is available in the log file
C:\DOCUME~1\kandti01\LOCALS~1\Temp\dd_NET_Framework20_Setup5306.txt.
Event ID 1023 - Product: Microsoft
.NET Framework 2.0 Service Pack 2 - Update '.NET Framework ASP .NET' could not
be installed. Error code 1603. Additional information is available in the log
file C:\DOCUME~1\kandti01\LOCALS~1\Temp\dd_NET_Framework20_Setup5306.txt.
Event ID 1023 - Product: Microsoft
.NET Framework 2.0 Service Pack 2 - Update '.NET Framework WinForms' could not
be installed. Error code 1603. Additional information is available in the log
file C:\DOCUME~1\kandti01\LOCALS~1\Temp\dd_NET_Framework20_Setup5306.txt.
In the directory C:\Windows\PCHealth\ErrorRep\Qsignoff, there is indeed a file 30E8DF.cab.
Further investigation into the permission for the Qsignoff folder, I found out that the group EVERYONE is being assigned with DENY permission to Traverse Folder/ Execute Files and the permissions apply onto the folder itself, subfolders and files. This could be the cause for the Event ID 10005 to occur.
The DENY permission was removed and the 3 files in the directory C:\Windows\PCHealth\ErrorRep\Qsignoff were deleted successfully.
After which the installation of the Microsoft .NET Framework 3.5 SP1 was carried out successfully with the following entries in the Windows Application Event log:
Event ID 1022 - Product: Microsoft
.NET Framework 2.0 Service Pack 2 - Update '.NET Framework CLR' installed
successfully.
Event ID 1022 - Product: Microsoft
.NET Framework 2.0 Service Pack 2 - Update '.NET Framework CA' installed
successfully.
Event ID 1022 - Product: Microsoft
.NET Framework 2.0 Service Pack 2 - Update '.NET Framework CRT' installed
successfully.
Event ID 1022 - Product: Microsoft
.NET Framework 2.0 Service Pack 2 - Update '.NET Framework PreXP' installed
successfully.
Event ID 1022 - Product: Microsoft
.NET Framework 2.0 Service Pack 2 - Update 'Dr. Watson' installed successfully.
Event ID 1022 - Product: Microsoft
.NET Framework 2.0 Service Pack 2 - Update '.NET Framework 1' installed
successfully.
Event ID 1022 - Product: Microsoft
.NET Framework 2.0 Service Pack 2 - Update '.NET Framework 2' installed
successfully.
Event ID 1022 - Product: Microsoft
.NET Framework 2.0 Service Pack 2 - Update '.NET Framework ASP .NET' installed
successfully.
Event ID 1022 - Product: Microsoft
.NET Framework 2.0 Service Pack 2 - Update '.NET Framework WinForms' installed
successfully.
Event ID 1022 - Product: Microsoft
.NET Framework 2.0 Service Pack 2 -- Installation completed successfully.
Event ID 1022 - Product: Microsoft
.NET Framework 3.0 Service Pack 2 - Update 'WPF2_32' installed successfully.
Event ID 1022 - Product: Microsoft
.NET Framework 3.0 Service Pack 2 - Update 'WCF' installed successfully.
Event ID 1022 - Product: Microsoft
.NET Framework 3.0 Service Pack 2 - Update 'WPF_1' installed successfully.
Event ID 1022 - Product: Microsoft
.NET Framework 3.0 Service Pack 2 - Update 'WF' installed successfully.
Event ID 1022 - Product: Microsoft
.NET Framework 3.0 Service Pack 2 - Update 'WPF_Other' installed successfully.
Event ID 1022 - Product: Microsoft
.NET Framework 3.0 Service Pack 2 - Update 'WF_32' installed successfully.
Event ID 1022 - Product: Microsoft
.NET Framework 3.0 Service Pack 2 - Update 'WPF2' installed successfully.
Event ID 1022 - Product: Microsoft
.NET Framework 3.0 Service Pack 2 - Update 'XPS' installed successfully.
Event ID 1022 - Product: Microsoft
.NET Framework 3.0 Service Pack 2 - Update 'WCS' installed successfully.
Event ID 1022 - Product: Microsoft
.NET Framework 3.0 Service Pack 2 - Update 'WPF_Other_32' installed
successfully.
Event ID 11707 - Product: Microsoft
.NET Framework 3.0 Service Pack 2 -- Installation completed successfully.
Event ID 11707 - Product: Microsoft
.NET Framework 3.5 SP1 -- Installation completed successfully.
The Exchange server was restarted and applied with the Microsoft .NET Framework 3.5 Family Update - KB959209. This update addresses a set of known application compatibility issues and consists of 3 files (i.e. NDP20SP2-KB958481-x86.exe, NDP30SP2-KB958483-x86.exe and P35SP1-KB958484-x86.exe). A reboot was performed for the Exchange server and the server was subsequently patched with those outstanding .NET Framework updates pushed down via the WSUS server.
The MBSA scan was conducted on the Exchange server after all the updates were installed successfully. The patch status report shows that the Exchange server has been updated till the latest patch status.