Crytography Service and .NET Update problems

A friend (XP Home) cannot stop the Cryptography Service. Event viewer error
msg says install .NET 1.1 to fix.

Attempts to update .Net result in "This setup will only upgrade over an
existing version of MicroSoft VM", so it would appear that that a necessary
component is missing or corrupted.

Trying to delete all references to .NET so he can start again, but going in
circles.
Ran SCANNOW with OEM CD but no joy.

..NET 1.1 and 2.0, plus hotfixes, showing in ADD/REMOVE but will not move.

Any ideas welcome, thanks

.

Relevant Pages

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