You may encounter the error 0x8007F070 STATUS_SETUP_ERROR while installing Windows XP Service Pack 3.
This could happen because of one of various reasons. To quickly troubleshoot this problem and get installing Service Pack3 for Windows XP SP3, try the following:
1. Disable Antivirus/Firewall
Try to download Windows XP Service Pack 3 from Microsoft Download Center. Once downloaded, disconnect from Internet and then disable your Antivirus/Firewall software and any other application not required to be running at this time. The reason behind download is the size 300MB of the SP3 file and that we are disabling the firewall and antivirus and hence keep yourself safe from any hack attempts.
If it fails try using Windows Updates
2. Use Windows Updates
To use Windows Update to successfully install Windows XP SP3 Background Intelligent Transfer Service (BITS). Check if the BITS is running and start it if it is not running. To start BITS,
1. Start – Run and type Services.msc
2. Look for Background Intelligent Transfer Service (BITS), right-click and select “start”
Now, you should very much be a happy bunny having installed Windows XP Service Pack 3.
Just incase, you are struggling there is still some light at the end of the tunnel.
3. Use Automatic Updates
Try using Automatic Updates after renaming the Software Distribution folder in Windows. This allows Automatic Updates to retry the installation.
To clear the Software Distribution folder,
Navigate to c:\windows\Software Distribution and rename the Download folder as something say download.orig.
Now try restarting Automatic Updates and try installing Windows XP Service Pack 3.
This should help!!!