I've had the same problem recently.. These two .net framework updates are quite irritating.. 
The solution I came up with was this..

I had to re-download directly from microsoft the .NET framework 1.1 and .net framework 
2.0 installation files.  (not the updates, the main installation files, do a search 
on microsoft.com)

Then also download the MSI cleanup utility  (search for it on Microsofts website). 
 Now, in my experience, I could not uninstall the .net frameworks because of a similiar 
error the updates gave, and I could not reinstall the .net frameworks because the 
system thinks (rightly) that they are already installed.  So, I had to use the MSI 
cleanup utility to remove the presence of the two .net frameworks.. Then, I could 
reinstall the .net frameworks.. And then update them as normal.


You might try just uninstalling and then reinstalling each framework, but if you 
get the error try the MSI utility.

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