WELL, THE ANSWER WASNT ON THE MS FAQ, BUT WAS RESOLVED THROUGH EMAILING THEIR SUPPORT CENTER
From your description, I understand Security Update for Microsoft XML Core Services 4.0 Service Pack 2 (KB954430) would be offered repeatedly and you have tried the suggestion on the website already. If I have misunderstood your concern, feel free to let me know.
This issue occurs if the previous components of MSXML are corrupted. I suggest we remove and reinstall MSXML components to resolve the issue.
Step 1: Download Microsoft Windows Installer CleanUp Utility
1. Visit the following link to download the utility: http://download.micr...1BD/msicuu2.exe
2. Save the file to the computer.
3. Install this tool on the computer.
Step 2: Remove MSXML software
1. Click Start -> (All) Programs -> Windows Installer Clean Up.
2. See if you can find MSXML software. If so, remove them.
3. Restart the computer.
After that, please try to reinstall MSXML 4.0 Service Pack 2 and MSXML 4.0 SP2 Security Update.
Step 3: Reinstall MSXML 4.0 Service Pack 2
1. Please download MSXML 4.0 Service Pack 2 and the related updates from the following links and save them to the Desktop.
MSXML 4.0 Service Pack 2http://download.micr...1629c/msxml.msi
MSXML 4.0 SP2 Security Update (KB936181)http://download.micr...B936181-enu.exe
Security Update for Microsoft XML Core Services 4.0 Service Pack 2 (KB954430) http://www.microsoft...displaylang=env
2. When the File Download window appears, please click Save, and follow the directions to save them to the Desktop.
3. After downloading the MSXML 4.0 Service Pack 2 setup file and its updates on to the Desktop, please double-click the files to manually install them one by one.
After finishing the above steps, let's check the result on the Windows Update web site again. After the scanning process is completed, let's check if the update KB954430 is still offered. If it is not offered, we can confirm this issue has been resolved. However, if any error message is encountered during the troubleshooting, please send me a screenshot for further research.
How to capture a Screenshot:
1. When the error appears, please press the "Print Screen" key (PrtScn) on your keyboard.
2. Click "Start", click "Run", type MSPAINT, and click "OK".
3. In Paint, click "Paste" under the "Edit" Menu, click "Save" under the "File" menu, type a file name for the screenshot, choose JPEG as "Save as type", click "Desktop" on the left pane, and click "Save".
4. Please find the screenshot on the Desktop and send it as an attachment to: firstname.lastname@example.org.
When attaching files to emails, the process will vary depending on the email application being used. While you are composing the email, most applications will provide you with either an "Attach" button or Paper Clip Icon to click in order to attach a file. After clicking this button/icon you must browse to the file you wish to attach and select it by either double clicking it or clicking it once and then clicking "Attach".