Windows Update - McAfee VSE exclusion of Windows Software Distribution folder

In recent problem solving for a couple of old Windows 2000 PCs, I discovered that they had not been updated for a considerable period of time.  In manually invoking Windows Update, an error was encountered and the return code was searched on the Internet. The solution that worked for corporate McAfee VSE (versions 7 and 8) was to locate the Windows "SoftwareDistribution" folder and create an exclusion.  McAfee locks up when the data base object is accessed preventing Windows Update. 

To exclude the Software Distribution folder from McAfee VSE scanning:

1. Launch McAfee VSE Console from start menu
2. Select On-Access Scan and double-click (or select properties)
3. Select All Processes
4. Select Detection tab
5. Select Exclusions button
6. Select Add New button
7. Browse for location of Windows "SoftwareDistribution" folder
8. Check also exclude Subfolders
9. Select OK button
10. Select APPLY button
11. Reboot PC so that exclusion changes will properly take place
12. Launch Windows Update manually (and move to Microsoft Update so that Office is also included)

Related Microsoft KB article
http://support.microsoft.com/kb/958048

QUOTE: You receive error code 0xC80001FE when try to connect to the Windows Update Web site or to the Microsoft Update Web site to install updates. This issue may occur if the Windows Update database is corrupted. Or, it may occur if the McAfee antivirus application is configured to scan the %Windir%\SoftwareDistribution directory. When the McAfee antivirus application scans the .edb file, the antivirus application locks the file. Therefore, Windows Update or Microsoft Update cannot access the file.