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Thanks for that but I haven't enabled System Restore (as I don't like it).
I found 2 other alternative solutions:
1. Use a filtering program (in my case it was AdAware SE Plus) to block the offending Microsoft page
2. More simply, go into IE6 Properties (right-click its icon), then, in the Target box, after the filename, type a space then 'about:blank'. This boots it to a blank screen, and gets around the issue of this Microsoft update effectively disabling that setting when it is selected in IE Internet Options.
Doing either of the above has no effect on getting Windows Updates. It seems that the issue is specific to this particular update. The filtering program will prompt you to accept or block unless it's set to Automatic. I imagine other programs would behave similarly. Going directly to the update site, however, doesn't pose that problem as no attempt is being made to write to the Registry, as the update was doing.
Hope people find this helpful.
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