I'm running Vista x64 Home Premium as admin (SP1 not installed)
Steps I've taken:
Googled the problem.
Uninstalled PowerShell 1
Cleaned the local registry via regedit, removed entries containing "PowerShell"
I still get the problem. Windows Update Standalone Installer crunches for 30 seconds and then posts the "The update does not apply to your system."
Any additional ideas/suggestions for working around this problem?