cholupa2

I seem to have cracked it. looking through the logs, I found the original source of the error ie. the true error code. I believe it was a 3754 if memory serves. Anyway, as it turns out, this error was linked to the 80070002 error way back in the development days. (I found a thread in technet from developers corresponding with the Beta development staff). Their advice(not from the microsoft people, still no solution from them) was to insert the disk, and re-run the install as "update", or in my case, "upgrade".
after completing the "upgrade" from x64 to x64, I ran windows installer and installed a crapload of updates. and then got a 8024200D error ( I hope I got the numbers right). Apparently, these two errors are very closely related. I actually got both when trying to install the same patch(not sp1). Microsoft had no information on this topic so I went back to the forums.
I found a veryuseful post that stated simply that windows update often tries to install patches out of order and that by hiding the update which is creating the error, you can trick windows into doing what it should have in the first place. I hope this helps someone else out there