Von,

I'm not sure what's going on with your machine, but KB832894 is MS04-004, a security update from Feb '04.

If the install didn't work during an update you'll never get to see any error messages.

Download the update direct from Microsoft (save it locally) here:
http://www.microsoft.com/downloads/d...displaylang=en

The run it manually, see if it kicks up any error messages.