KB960082 (SQL) fails

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I have just got around to installing this update (KB960082) on my SBS 2003 R2 machine. Unfortunately it failed.

The windows update log says:

Failure Content Install Installation Failure: Windows failed to install the following update with error 0x80070643: Security Update for Windows Server 2003 (KB960082).
2009-06-07 14:17:23 9060 2450 Handler Install completed with 0x80070bc

I have googled a little on the error and turned up an MS support page suggesting that this update could not be installed if the WSUS database exceeds 2GB (mine is around 4GB):

http://support.microsoft.com/kb/967092/

However, looking through the Application Event Viewer there are the following errors when I attempted to install the update:

Product: Microsoft SQL Server Desktop Engine (WSUS). The file C:\Program Files\Microsoft SQL Server\80\Tools\Binn\sqlvdi.dll is being held in use by the following process Name: sqlservr , Id 1920

Connection to database failed. Reason=SQL Server does not exist or access denied.. Connection string: Data Source=SRV1\WSUS;Initial Catalog=SUSDB;Connection Timeout=60;Application Name=WSUS SQL Connection;Trusted_Connection=Yes;Pooling='true'; Max Pool Size = 100

Connection to database failed. Reason=Cannot open database requested in login 'SUSDB'. Login fails.
Login failed for user 'DOMAIN\USER'.. Connection string: Data Source=SRV1\WSUS;Initial Catalog=SUSDB;Connection Timeout=60;Application Name=WSUS SQL Connection;Trusted_Connection=Yes;Pooling='true'; Max Pool Size = 100

Connection to database failed. Reason=Login failed for user 'NT AUTHORITY\SYSTEM'. Reason: Server is in single user mode. Only one administrator can connect at this time.. Connection string: Data Source=SRV1\WSUS;Initial Catalog=SUSDB;Connection Timeout=60;Application Name=WSUS SQL Connection;Trusted_Connection=Yes;Pooling='true'; Max Pool Size = 100

To me that suggests a permission error.... EventID.net lists some of those errors and suggested fixes are linked to user permissions.

Can anyone shed any light for me please? Thanks.
.

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