There’s a well-known bug in the Win7 update installer that can throw error 0x8000FFF unless you pre-install an upgrade to the installer. I wrote about this Servicing Stack Update (SSU) requirement about a month ago.
Three weeks ago, Microsoft promised to fix the problem. Superficially, the problem shouldn’t exist anymore. But because of sloppy implementation, the bug’s still there, and people are still hitting error 0x8000FFF when they try to install Win7 Monthly Rollups. Fellow columnist Steven J. Vaughan-Nichols hit the same problem yesterday.
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