unable to install Updates

PROBLEM:
You are unable to install Updates. "The System cannot find the file specified."
There are no KBxxxx.log files written.

setupapi.log states the following errors:
=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=
#-198 Command line processed: e:\4717cda1cf9f3f033363c78ea8d60a96\update\update.exe
#I443 No installed Authenticode(tm) catalogs matching catalog name "oem4.CAT" were found that validated file "e:\4717cda1cf9f3f033363c78ea8d60a96\update\update_SP2GDR.inf" (key "update_SP2GDR.inf"). Error 0xfffffbbe: Unknown Error.
#I443 No installed Authenticode(tm) catalogs matching catalog name "oem6.CAT" were found that validated file "e:\4717cda1cf9f3f033363c78ea8d60a96\update\update_SP2GDR.inf" (key "update_SP2GDR.inf"). Error 0xfffffbbe: Unknown Error.
#W361 An unsigned, incorrectly signed, or Authenticode(tm) signed file "e:\4717cda1cf9f3f033363c78ea8d60a96\update\KB932168.cat" will be installed (Policy=Ignore). Error 0xfffffbbe: Unknown Error.
[2008/02/11 10:15:44 728.2]
#-198 Command line processed: e:\2605d0913f6df577310a4afaae3607\update\update.exe
#I443 No installed Authenticode(tm) catalogs matching catalog name "oem4.CAT" were found that validated file "e:\2605d0913f6df577310a4afaae3607\update\update_SP2GDR.inf" (key "update_SP2GDR.inf"). Error 0xfffffbbe: Unknown Error.
#I443 No installed Authenticode(tm) catalogs matching catalog name "oem6.CAT" were found that validated file "e:\2605d0913f6df577310a4afaae3607\update\update_SP2GDR.inf" (key "update_SP2GDR.inf"). Error 0xfffffbbe: Unknown Error.
#W361 An unsigned, incorrectly signed, or Authenticode(tm) signed file "e:\2605d0913f6df577310a4afaae3607\update\KB932168.cat" will be installed (Policy=Ignore). Error 0xfffffbbe: Unknown Error.

CAUSE:
Missing files within
C:\WINDOWS\system32\CatRoot\{F750E6C3-38EE-11D1-85E5-00C04FC295EE}
-> the folder is empty.

RESOLUTION:
We have to fix catroot folder. Easiest way is to copy all the files missing from a similar system with the same patch-level and service pack level.
After that net stop crypt32, remove catroot2, net start crypt32; run tool "sigverif"

Another possibility would be an inplace upgrade.