Thanks for that suggestion.
I pursed the Microsoft Tech Net a bit more and found this link -
http://support.microsoft.com/kb/976982/en-us
This page speaks a great deal about missing or corrupted MSI files, and about half way down the page offers a "Framework Cleanup Tool" -
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.NET Framework 1.0, 1.1, 2.0, 3.0, 3.5
To repair the .NET Framework 1.0, 1.1, 2.0, 3.0, 3.5, use the .NET Framework Cleanup Tool to uninstall multiple versions of the .NET Framework, and then reinstall the components.
To do this, follow these steps:
1.Visit the following blog post:
.NET Framework Cleanup Tool User's Guide
(http://blogs.msdn.com/b/astebner/archive/2008/08/28/8904493.aspx)
2.Download dotnetfx_cleanup_tool.zip from the following site:
http://blogs.msdn.com/cfs-file.ashx/__key/CommunityServer-Components-PostAttachments/00-08-90-44-93/dotnetfx_5F00_cleanup_5F00_tool.zip
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The clean up tool basically lets you pick which version of .NET you wish and it clears all entries in the registry per your selection.
I removed 3.0, 3.5 and 4.0 using the tool, then reinstalled Framework 2.0. I decided to let "Microsoft Update" decide what happened next. It then chose to download and install the Framework 2.0 - 3.5 Update which is the orginal 11 updates I could not do before. They were successfull.
I have not reinstalled .Net 4.0 + yet and choose to wait for the time being, or if Windows runs across something in which it decides that version is necessary. We'll see what happens.