When you try to install a hotfix or an update on a computer that is running Windows XP, the hotfix or the update is not installed. Additionally, you receive the following error message:

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This issue may occur if one of the following conditions is true:

•	You are not logged on to the computer as a user who has local administrator permissions.
•	The domain Group Policy settings that are applied to the computer are too restrictive for the domain user to install a hotfix or an update.

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To resolve this issue, follow these steps:

1.	Verify that the user who is trying to install the hotfix or the update has local Administrator permissions. To do this, follow these steps: a. Click Start, and then click Run. b. Copy and then paste (or type) the following command in the Open box, and then press ENTER: compmgmt.msc c. Expand System Tools. d. Expand Local Users and Groups. e. Click Groups. f. Right-click Administrators, and then click Properties. g. Verify that the user is a member of the Administrators group, and then click OK.
2.	Verify that the domain Group Policy settings are not too restrictive to install a hotfix or an update. To do this, follow these steps: a. Click Start, point to All Programs, point to Administrative Tools, and then click Active Directory Users and Computers. b. Right-click the domain, and then click Properties. c. Click the Group Policy tab. d. Click Default Domain Policy, and then click Edit. e. Expand Computer Configuration. f. Expand Windows Settings. g. Expand Security Settings. h. Expand Local Policies. i. Double-click User Rights Assignment. j. Locate the following policies, and then add the Administrators group to each policy: • Backup Files and Directories • Restore Files and Directories • Manage auditing and security log • Take ownership of files or other objects • Debug programs k. Close the Group Policy dialog box and the Active Directory Users and Computers dialog box.
3.	Click Start, and then click Run.
4.	Copy and then paste (or type) the following command in the Open box, and then press ENTER: cmd
5.	At the command prompt, type the following commands, and then press ENTER after each command: gpupdate /force exit
6.	Click Yes if you receive a message to restart the computer.

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For more information about a similar issue for computers that are running Microsoft Dynamics CRM 3.0, click the following article number to view the article in the Microsoft Knowledge Base:

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