This is an error having to do with the .NET framework. You probably have version 2.0.
1. Before doing anything else, write down the .NET Framework versions which
are already installed:
How to determine which versions of the .NET Framework are installed and
whether service packs have been applied
http://support.microsoft.com/kb/318785
2. Now see Resolution Method 2 in...
When you try to install an update for the .NET Framework 1.0, 1.1, 2.0, 3.0,
or 3.5, you may receive Windows Update error code "0x643" or Windows
Installer error code "1603" (ignore the title, if need be)
http://support.microsoft.com/kb/923100
After running the appropriate/needed tool, (re)install all .NET Framework
versions manually using the download links on the page then run Windows
Update manually to install security updates for same.
NB: KB923100 references this page:
http://blogs.msdn.com/astebner/archive/2006/05/30/611355.aspx. Please read
ALL of it as well as the related page
http://blogs.msdn.com/astebner/pages/8904493.aspx before using the .NET
Framework Cleanup Tool.
Or see the "How to obtain help" section of
http://support.microsoft.com/kb/953297
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