KB940357 fails in SBS with error '0x8007F0F4'

I have been offered with the Update "Critical Update for Windows Small Business Server 2003 R2 (KB940357)" on my server SBS Windows Server 2003 Service Pack 2. This update fails every time when it is tried to install and prompts error "0x8007F0F4", I have even tried the update to download and install manually, but fails with error "This update can only be installed on Windows Small Business Server 2003 R2. For more information, see the system requirements on the download page.".
I am unable to determine the exact cause of the failure.