That update failed for me also after sp1 was installed first (I had checked off all updates and it chose sp1 first to install). However, I checked updates 10 minutes ago and in the optional download section there was a separate file with the same description (different KB number)

Update for Windows 7 for x64-based Systems (KB2488113)

Installation date: ‎23/‎02/‎2011 1:49 PM

Installation status: Successful

Update type: Optional

This is a reliability update. This update resolves some performance and reliability issues in Windows. By applying this update, you can achieve better performance and responsiveness in various scenarios. For more information please see the Knowledge Base article. After you install this item, you may have to restart your computer.

Here's the old one:

Update for Windows 7 for x64-based Systems (KB2387530)

Installation date: ‎22/‎02/‎2011 6:50 PM

Installation status: Failed

Error details: Code 80242016

Update type: Recommended

Install this update to resolve issues in Windows. For a complete listing of the issues that are included in this update, see the associated Microsoft Knowledge Base article for more information. After you install this item, you may have to restart your computer.

They look to be the same update.

I'm now running SP1 on 64-bit. It installed really quickly, with the most time-consuming part being the slow download speed (which is only because SP1 is brand new).

As some of you have discovered the hard way you should install all listed updates prior to SP1. This is one of several reasons why Service Packs are not automatically checked when first released. Microsoft will sort this out soon enough, so it's no big deal, and the benefits of SP1 outweigh the temporary lack of a couple of updates.

The Service Pack and Internet Explorer blockers are not really intended for home users; they are meant for use in corporate and educational environments where major updates need to undergo thorough compatibility testing by the IT department before they are cleared for deployment. Home users typically aren't trying to shoehorn poorly coded, decade-old business software into a modern OS so don't need to worry about delaying updates.

For those looking to make SP1 permanent - and free up between 500MB and 1.5GB of disc space, run the following from an elevated command prompt.

dism /online /cleanup-image /spsuperseded

This invokes the Deployment Image Servicing and Management tool and removes the backup files and the install package from the disk.

This does mean that YOU WILL NOT BE ABLE TO DO A ROLLBACK of the install.

It already gave me 60GB of reclaimed space from removing tons of now useless restore points. I'll gladly hold onto the service pack in case something happenes.

deleted

Interesting that it's not even giving me the option to install this thing. It's almost like it knows there's no point.

If you haven't installed most of the previous updates (can't remember which exactly were the prerequisites) it won't display for you in WU.
To be exact, according to this kb article, Update 976902 may have to be installed on your computer before Windows 7 SP1 will be offered in Windows Update.

I found the solution - sp1 makes kb2387530 an obsolete update by default.

http://social.answers.microsoft.com/Forums/en-US/vistawu/thread/3d6cb6de-87c9-4c71-8c22-506adbe369

[i]One of the files updated by KB2387530 is Wcncsvc.dll, it is updated to version 6.1.7600.16661 by this update.

I found this while searching about it:

Service Pack 1 updates this file to 6.1.7601.17514, therefore if this KB update is in queue after SP1, it would attempt to update it to a lower version, which cannot be done. Hence - FAIL. LOL. [/i]

It fails because sp1 installs a more recent dynamic link library file than the one found in update kb2387530.

Ah, that one. Thanks. For some reason it was hidden alongside that DRM one. Don't get me wrong, my copy is legit. But I'm not about to help MS with their DRM.

DRM what? :)

I somehow think he's referring to the WGA/activation procedure.

Some anti piracy bullshit. Sort of like that Genuine Advantage crap. I didn't see the point in it so I skipped it. It's not like it's there to help me after all.
Specifically KB971033

Can't install the service pack . Missing component error . :(

Now running this
http://www.microsoft.com/downloads/en/details.aspx?FamilyID=914fbc5b-1fba-4bae-a7c3-d2c47c6fcffc

Just figured I'd point out that I installed it on my Windows 7 64-bit machine and have had no problems whatsoever. I hadn't even seen this thread, I just got the notifications for Windows updates and applied them.

Same here. It popped up yesterday and I said OK go ahead and install. :)