windows update problem with GA-K8N51GMF-9

I have problem installing one particular windows update: KB904706
directx 9 security update. It will pause and time out after unpacking
the files and just before installing them. CSRSS.exe will show about
25% CPU usage while WinMgmt.exe will show about 75% CPU usage. I was
unable to close either of them and have no choice but to restart
computer.
Booting into safe mode, I was able to install the update, but upon next
restart, there will be a BSOD about some power driver thing.
Next restart, windows will boot normally, but a check with windows
update will show that the particular update has failed. There is no
problem with the rest of the updates.
I understand that some laptop's touchpad will have problems with this
particular update, but I am not using a desktop, there is no touchpad,
so am wondering how to solve this problem.

Drivers installed are:
nForce_430_410_8.22_winxp2k_english
81.85_forceware_winxp2k_english_whql
driver_usb_nvidia_c51
driver_audio_microsoft_bus
driver_audio_realtek_azalia