This update (KB929777) failed twice before I went searching for the answer. I found this posting on Microsoft's TechNet forums:
http://social.technet.microsoft.com/Forums/en-US/itprovistasecurity/thread/6b9f6a7c-1b91-422f-a803-11440418008f/
The post in the middle with the fewest steps seemed to work for me. Here's the gist:
1: Open up "Control Panel" and navigate your way to "Programs and Features".
2: Click "View installed updates" on the left hand side.
3: Find the update KB929777 and uninstall it.
4: Attempt to install the update again in Windows Update
5: Once successful, restart your PC.
Here's what it looks like after the solution is applied:
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Rule of Thumb for future problems on Vista: Look for and/or remove previously installed Hotfixe and reload to see if it will solve the problem.
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