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Having just installed a clean Windows XP Service Pack 3 VMWare image the last thing you expect to see is Windows Update with an error (well being an MS product perhaps that’s not entirely true!). Either way here’s the quick fix:

Error Code: 0x80248007

Fix:
1) Stop the Automatic Update service,
Go to  Start – Run – type in Services.msc and click ok,
Select the Automatic Update service and click the stop button.
2) Rename the SoftwareDistribution folder
Go to C:\Windows and rename the SoftwareDistribution to something suitable (e.g. SoftwareDistribution.old)
3)Start the Automatic Update service,
Go to  Start – Run – type in Services.msc and click ok,
Select the Automatic Update service and click the start button.
4) Retry running Windows/Microsoft Update