Thanks Richard. I was over-ridden. I ended up doing a restore to factory late this afternoon, before I saw your post.
I'm sorry to have wasted your time on this, I really thought the owner wanted to fix the problem rather than start over. After the restore I was able to install 136 updates, including SP1 with no problem.
Bill, I did run through all the different fix scenarios before I posted here. Thank you though.
