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Why won't KB823353 install on my system?

Actually, KB823353 is a superseded Outlook Express cumulative update. You should mark all superseded Cumulative Updates (for OE and IE) as "Not Approved" and only mark the latest Cumulative Update (for IE/OE) as Approved.

There is a 'bug' in the detection logic for Cumulative Updates, and it fails to properly determine the supercession of those type of updates.

However, the KB823353 update is only superseded for Windows XP and Windows Server 2003; it is NOT superseded for Windows 2000.

So, on the Windows 2000 system:
    There's a known conflict between KB823353 (MS04-018) and KB897715 (MS05-030) which still affects Windows 2000 systems.

The MS04-018 update (KB823353) will not install correctly on top of the KB897715(MS05-030) update, so the 'fix' for this is to uninstall the KB897715 (MS05-030)update, install the KB823353 (MS04-018) update, and then reinstall the KB897715(MS05-030) update. Again my apologies for misleading you on this particularissue.

On Windows XP and Windows Server 2003, however, the MS04-018 sec update is contained in the latest service packs, and the appropriate resolution on those systems is to unapprove the sec update and approve/install the service packs -- but if you don't want the service packs, the same procedure wrt KB897715 would be appropriate.