The .NET known issues section was updated tonight:
Known issues and additional information about this security update
For more information about installation issues with Microsoft .NET Framework 3.5, click the following article numbers to view the article in the Microsoft Knowledge Base:
(http://support.microsoft.com/kb/923101/ ) Error message when you try to install a security update for the .NET Framework 2.0 on a computer that is running Windows Server 2003 x64 Edition: “Error 1324. The folder ‘Program Files’ contains an invalid character”
(http://support.microsoft.com/kb/2197148/ ) A known issue with the Microsoft .NET Framework 2.0 Service Pack 1 updates and the Microsoft .NET Framework 3.5 updates
(http://support.microsoft.com/kb/2260913 / ) Files in use or file locks can result in Framework Assembly files being deleted
(http://support.microsoft.com/kb/2263996/ ) Patching of Microsoft Framework can fail with Access is denied or File in Use error
Does Microsoft have a way to repair corrupted Dot Net under Windows 7 and Server 2008 R2 being that with those you can’t do the uninstall/reinstall trick because a lot of versions of Dot Net are pre built into the OS ?
http://blogs.msdn.com/b/astebner/archive/2008/08/28/8904493.aspx
Right now they point to “bless his heart” Aaron Stebner’s blog