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Rebekah,
When you get the MSI prompt, place your installation disc into the drive and point the prompt to the CD drive. What's happened is that the security update has modified a file that Ghost has marked as a critical component. Uninstall/reinstall would also be an appropriate resolution. The cause has more to do with an end result of performing the update. This is based on your description of course.
Erik,
Uninstalling/reinstalling did the trick. I had to kill a leftover msiexec.exe before it would work (left over from the failed attempt to run Ghost). FWIW I couldn't do anything with the MSI prompt - it was a DOS looking window that said it was stopping Ghost, with no place to enter anything before it disappeared. Just having the Ghost CD in during the boot when that came up didn't help. I had to do the full uninstall and reinstall. Thanks for indicating what the real problem was - I didn't want to just blindly reinstall if the real problem was that XP and Ghost were not going to work together any more.
Rebekah
Not a problem Rebekah. Good to know that the prompt was a DOS window and not an MSI window.