Failure when installing Windows Server 2003 Service Pack 2: "An Internal error occurred"

Source: Microsoft Support

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When you try to install Service Pack 2 onto the Windows Server 2003 computer, the following error occurs.

Service pack 2 setup error
An Internal error occurred
OK

After you click OK, the following error occurs:

Service pack 2 setup error
Service pack 2 installation did not complete
OK

In the svcpack.log file, you see the following errors:

985.327: Update.exe extended error code = 0x1ffe054f
985.327: Update.exe return code was masked to 0x643 for MSI custom action compliance.

This error can occur due to the following reasons:

Cause 1:
The Licdll.dll file was unregistered, or the version is not correct. If this is the cause, you may find the following line in the svcpack.log file:

134.969: CheckVLKForBlock: LIC.dll not trust verified

Cause 2:
The Product ID information in the registry was in the incorrect format. If this is the cause, you may find the following line in the svcpack.log file:

943.036: IsSPBetaKey:PID is not in proper form

For Cause 1, please follow the actions below to resolve the issue.

1. Click Start>Run.

2. Type the command below and press Enter.

regsvr32.exe licdll.dll

It should report "DllRegisterServer in licdll.dll succeeded."

3. Reinstall Service Pack 2.

If this does not work, install the hotfix KB912354 to update the licdll.dll file. Then try the actions again.

For Cause 2, please follow these steps:

1. Run REGEDIT.EXE to launch Registry Editor.

2. Locate the following registry key:

[HKEY_LOCAL_MACHINE\Software\Microsoft\Windows NT\CurrentVersion]

3. In the right pane, find the�ProductId�value. It's format should be like this:

Name: ProductId
Type: REG_SZ
Value: XXXXX-XXX-XXXXXXX-XXXXX

If the hyphens are missing from the value, the issue would occur. Please change the format to the�correct one.

4. Reinstall Service Pack 2.

For more information, please read the following documents:

You may experience a system memory leak of private bytes in the Winlogon.exe process on a computer that is running Windows XP or Windows Server 2003
http://support.microsoft.com/kb/912354

"Service Pack 1 Setup Canceled" Error Message When You Install Windows XP SP1
http://support.microsoft.com/kb/329261

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