The first time I saw this issue was on Adrian's server, but could not determine if that was the patch that caused the issue. The issues were related to .NET service packs which were installed at approximately the same time as the SharePoint update. After removing .NET 2 SP1 and reinstalling .NET 2 again, the configuration wizard ran without a problem.
It is preferred that SharePoint and WSS Service Pack 1 is installed over the KB download for the simple reason that Microsoft have put a lot of bug fixes into these service packs, as well as providing an slight increase in performance. The KB Article was listed to be installed only in cases where SharePoint/WSS SP1 cannot be installed for any reason at all (downtime, production server issue, etc).
WSS 3.0 SP1 can be downloaded from here:
http://www.microsoft.com/downloads/detai...laylang=en
SharePoint Server 2007 SP1 can be downloaded from here:
http://www.microsoft.com/downloads/detai...laylang=en
You should carefully and thoroughly read all of the instructions provided by Microsoft. WSS 3.0 SP1 should be installed before SharePoint Server 2007 SP1. Do not run the SharePoint configuration wizard after WSS 3.0 SP1 has installed (The installer opens this automatically - cancel it). After WSS 3.0 SP1 is installed, install SharePoint Server 2007 SP1, after which you can run the SharePoint configuration wizard. This configuration wizard must be run after the SharePoint 2007 SP1 installation - if it is not run, SharePoint does not get updated.
In general, its preferred that customers don't install any SharePoint / WSS Updates that come through Microsoft Update, as they can cause issues with your SharePoint Server Farm, especially when the update is unattended.
If any issues are encountered updating SharePoint / WSS please contact the Scholaris Partner providing support for you.
Kevin Storey
Techology Specialist - Scholaris International