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I'm fighting with the KB2160329 update. Windows 7 x64, installed and unable to start up the system.... There is a trick to revert it, but how to go about installing it.

Seems that there is some issue with update on the win32k.sys file as there is entry in C:\Windows\winsxs\pending.txt just for that.

There is an attempt to update from 6.1.7600.16585 to 6.1.7600.16617 that seems to get stuck.

Any ideas?

BTW, when I start just after installation I'm getting BSoD saying

STOP: c000021a {Fatal System Error}
The initial session process or system process terminated unexpectedly with a status of 0x00000000 (0xc0000034 0x00100928)
The system has been shut down
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I'm having a similar issue. If I install this update, win7 will refuse to boot. It'll just restart the computer. If I boot the computer in safe mode twice, the update goes away automatically. For now, I have added it to ignored updates. – quano Aug 14 '10 at 0:12
Do you have ATI card by any chance? I'm reinstalling this update and now managed to get a memdump, where it is atikmpag.sys allocation by dxgkrnl & win32k that causes hardware failure. I'm going down through drivers, trying to find a working one. – stic Aug 14 '10 at 3:17
Up until a couple of days ago, I've been using a Radeon 5850 card, but have now replaced it with my old 8800GT (since I wanted my s-video out back). There might of course be some remnants left, if the ATI uninstaller didn't remove them. Actually, the first time after installing Win7, my computer behaved in the way I described above (before installing anything). So I'm not quite sure what might be wrong. – quano Aug 14 '10 at 8:58

I have seen this in the recent past when the windows kernel or other driver that hooks the kernel is updated, most were systems compromised by a rootkit that was also hooked into the kernel.

Scan your system for a rootkit

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Not a rootkit, checked that... However, I've removed few system drivers (on my own, knowing what for these are). Maybe that was it... anyway did reinstalled already :( – stic Aug 13 '10 at 18:29
However on a second though - you might be onto something. I'm unable to run RootkitRevealer or the F-secure one (but I won't trust it anyway). That is after restart all drivers update and Windows Update - I'm afraid that it might be one of drivers misbehaving. ATI for gfx, Intel for SATA controllers (I was unable to get AHCI working as well).... I hate when updates are installed on Fridays – stic Aug 14 '10 at 12:42

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