I just reinstalled a Dell box with WinXP SP3 and proceeded to try to run Windows Update to download patches, but I got a redirect to KB2497281.
This KB article is rather misleading. It states that Windows Update doesn't run without SP3, but my CD already has SP3.
I've manually reinstalled SP3 to no avail. I've also started and restarted automatic updates service. I've left it running with automatic updates turned on for a few days but nothing updated.
I then checked another WinXP install that had been running updates successfuly and was fully patched as of a month ago, and it also cannot run Windows Update.
I tried re-installing the Windows Update Manager based on kb949104 to no avail.
I know MS is trying to push XP out the door but this is just too rough.
I get this alot as well, the easiest way to fix is to enable automatic updating, and then running wuauclt /detectnow from the RUN dialog to prompt it to check in. After an initial blast of updates it should start working properly.