Windows Update and I have a different definition of successful update

I returned to Windows to work on some customer changes in the application I have been working on when I see Windows Update is ready to install something. I tell it to go ahead, and then I see this a couple minutes later:

Ut oh, what is that? I just wrote about how IE 7 stopped working with dumb error messages like in the Apple Computer Cart ad, here we go again. I then look to see what Windows Update is doing:

So it's installing the update describing in this MS Knowledge Base article, not a lot of detail here. Not much I can do, I click OK, and then I see this a few seconds later.

Going downhill fast. I click OK again, and see this:

Thanks Windows Update, glad to know there was nothing to worry about. I'll just go into Event Viewer and see if there are any errors, and here is what is in Application:

Event Type: Error
Event Source: Application Error
Event Category: (100)
Event ID: 1000
Date:  4/26/2007
Time:  3:11:13 PM

Description:
Faulting application printfilterpipelinesvc.exe, version 6.0.6000.16438,
faulting module printfilterpipelinesvc.exe, version 6.0.6000.16438,
fault address 0x000216c8.

And in System, some more information about what was being installed. I am loving me some XPS:

Event Type: Information
Event Source: NtServicePack
Event Category: None
Event ID: 4377
Date:  4/26/2007
Time:  3:11:59 PM

Description:
XML Paper Specification Shared Components Pack 1.0 Hotfix XpsEPSC was
installed.