There is a fair amount of chatter in Microsoft forums regarding problems cause by recent Microsoft patches.  [1][2][3][4] From what I can gather users are repeatedly being prompted to reinstall 3 older .NET patches on some OS distributions.   It looks like MS12-035 was intended to replaced 3 older patches MS11-044, MS11-078 and MS12-016 and something isn't quite right.   You may want to hold of deploying that patch until we know more.  

Thanks to Dave (ToyMaster) for the heads up and hard work researching the issue.  I think he has a blog post pending [5] that will explain the issue in more detail.   I'll keep you updated here as I learn more.  

Do you have any more information for us?   Leave me a comment or contact us via the handler contact page.

Update:  Dave has informed us that Dickh's comment below led to a solution that worked for him.  KB942288 needed to be reapplied even though he had already had it applied.  Thanks for all the responses in tracking this down.

Mark Baggett

@MarkBaggett

http://www.indepthdefense.com

[1] http://social.technet.microsoft.com/Forums/en-US/smallbusinessserver/thread/2f0bbb7d-fc28-4c32-bf63-54cf5a6615d2

[2] http://social.technet.microsoft.com/Forums/en-US/itproxpsp/thread/c7934c6f-0acd-4793-b222-e840eb61b3a6

[3] http://msmvps.com/blogs/bradley/archive/2012/05/21/hang-loose-until-someone-in-redmond-wakes-up-and-fixes-microsoft-update.aspx

[4] http://answers.microsoft.com/en-us/windows/forum/windows_xp-windows_update/kb2633880-kb2518864-kb2572073-installed-but-not/e6ecef19-5551-4925-9d74-43813ba04d3a

[5] http://home.comcast.net/~itdave/site/