Error installing windows security updates on upgrade from Windows XP Home to Professional

So I recently upgraded my windows XP Home version to Professional in need of IIS web
server. XP Home does now allow IIS installation (there are various hacks mentioned
on websites but I could not make it to work). The issue was that my windows automatic updates which were working totally fine before the upgrade, started erroring out after the upgrade. The updates were getting downloaded however they won't install. I had a queue of over 90 updates to be installed. The error on the installation screen was unhelpful just saying "Updates were not installed". My further analysis pointed me to the "windows update log file".

C:\WINDOWS\WindowsUpdate.log

To access the log file easily do:
Click Start > Run...
Type/paste %windir%\windowsupdate.log in the "Open:" field
Click OK

So in my logs I found this error (see below for stack trace). Re-Register the Windows Update dll files and that did the trick.

Run the following on command prompt:

regsvr32.exe c:\windows\system32\wuweb.dll
regsvr32.exe c:\windows\system32\wups2.dll
regsvr32.exe c:\windows\system32\wups.dll
regsvr32.exe c:\windows\system32\wucltui.dll
regsvr32.exe c:\windows\system32\wuaueng1.dll
regsvr32.exe c:\windows\system32\wuaueng.dll
regsvr32.exe c:\windows\system32\wuapi.dll

The windows update will automatically restart after a while and shows up the queued updates in system tray. Works from there.

Stacktrace
2008-07-09 22:18:22:703 3812 a78 Misc =========== Logging initialized (build: 7.0.6000.381, tz: -0700) ===========
2008-07-09 22:18:22:703 3812 a78 Misc = Process: C:\WINDOWS\system32\wuauclt.exe
2008-07-09 22:18:22:703 3812 a78 AUClnt FATAL: Error: 0x80004002. wuauclt handler: failed to spawn COM server
2008-07-09 22:18:22:718 1248 8c0 Handler FATAL: 0x80004002: ERROR: Remote update handler container process created (PID: 3812), but exited before signaling event
2008-07-09 22:18:25:906 1248 8c0 Agent * WARNING: Exit code = 0x80004002
2008-07-09 22:18:25:906 1248 8c0 Agent *********
2008-07-09 22:18:25:906 1248 8c0 Agent ** END ** Agent: Installing updates [CallerId = AutomaticUpdates]
2008-07-09 22:18:25:906 1248 e5c AU >>## RESUMED ## AU: Installing update [UpdateId = {707E6500-81C1-4165-8C43-631E09891716}]
2008-07-09 22:18:25:906 1248 8c0 Agent *************
2008-07-09 22:18:25:906 1248 e5c AU # WARNING: Install skipped
2008-07-09 22:18:25:906 1248 8c0 Agent WARNING: WU client failed installing updates with error 0x800040022008-07-09 22:18:25:906 1248 e5c AU >>## RESUMED ## AU: Installing update [UpdateId = {DD167F04-69E8-46A0-83DA-D4A5143EDBF1}]
2008-07-09 22:18:25:906 1248 e5c AU # WARNING: Install skipped
2008-07-09 22:18:25:906 1248 e5c AU >>## RESUMED ## AU: Installing update [UpdateId = {7CB0B704-B2FF-4D5C-B202-B5BA340B7007}]
2008-07-09 22:18:25:906 1248 e5c AU # WARNING: Install skipped
2008-07-09 22:18:25:906 1248 e5c AU >>## RESUMED ## AU: Installing update [UpdateId = {73F11106-7351-465D-9BA5-2881436C0D5A}]
2008-07-09 22:18:25:906 1248 e5c AU # WARNING: Install skipped
2008-07-09 22:18:25:906 1248 e5c AU >>## RESUMED ## AU: Installing update [UpdateId = {383B0108-D3E2-4F2A-9E32-7B7B599BB0F7}]