Unable to install .NET 1.1 via Windows Update and Redistributables

I've installed Windows XP Pro on many systems, but this is the first time
I've encountered this problem.

I just can't seem to get the following software installed via Microsoft
Update without an error code of: 0x80246002

..NET 1.1
..NET 3.0

I'm starting with a fresh install of Windows XP Pro on a brand new quad-core
workstation.

I installed software in the following order:

Windows XP SP1 (from original installation CD)
SP2 (redistributable executable from microsoft)
Microsoft Update (and every critical and major update successfully installed)

I was, however, able to install .NET 1.0 from the XP CD-Rom, and .NET 2.0
worked from a redistributable file. Nothing unusual happened during the
installation of those two programs, but I cannot apply service packs to them
without the same 0x80246002 error.

Finally, one more conundrum:

I've noticed that the .NET 1.1 redistributable does not have a proper
certificate -- Windows claims that it comes from an "Unknown Publisher", and
when I run it anyways, it dies when extracting InstMsiW.exe with the error:

"Extracting file failed. It is most likely caused by low memory (low disk
space for swapping file) or corrupted Cabinet file."

This can't be the case, since this is a brand new computer with over 700GB
of free space and 2 GB of ram, with nothing running in the background. I've
attempted redownloading the same file several times, but I'm led to believe
that maybe the file on Microsoft's website is corrupted because the file does
not change in any way with each successive download, even after clearing my
cache.

I'm dying to get this new workstation started. Your help is greatly
appreciated.
.

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