Windows XP BSOD caused by KB978262

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So, should those of us with XP remove that update? and if so, do we just remove it through the add/remove menu? I should note that I have the updates, as it does it automatically and it restarted itself without issue two days ago. But after reading that I'm kinda afraid to shut the computer down!
 
***The actual fix is the 2nd post in the thread, the one marked as an answer. Link updated in first post.]

Just had to do this on a friend's computer, and it worked. Computer boots just fine now.
 
So should those of us who have this update uninstall it? My computer restarted fine after the install, but could I still be facing that BSoD issue?
 
the BSODs are coming from users with an infected PC, TDDS Rootkit.

Some XP Users Get BSOD After Patch Tuesday, Malware Blamed

Microsoft pulled the MS10-015 update out of circulation last week due to user complaints that the patch caused their XP build to BSOD. After investigation, MS said that the issue is due to the TDSS rootkit and issued a statement that users have to remove the malware before patching. Yeah, good luck with that.


Because TDSS uses crafty techniques to hide itself on the operating system, many antivirus programs have a hard time detecting it, said Roel Schouwenberg, a Kaspersky antivirus researcher. "The more I look into it, the more plausible it becomes that this is indeed the (main) issue behind the BSOD. MS10-015 is a kernel update with atapi.sys containing the extremely advanced TDSS kernel rootkit," he said via instant message. "Microsoft pulling the patch obviously says something about how widespread this thing is."
 
On a related note... Was running MSE on the laptop I fixed after removing the update to fix the initial BSOD, and it found atapi.sys to be infected. Rebooted and it gave me a 0x7B BSOD. Had to replace the atapi.sys from the XP disc into the installation because the previous one was quarantined. The file on the disc is located in:
<disc letter>:\i386\atapi.sys
on the install:
c:\windows\system32\drivers\atapi.sys
 
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