for those who still were not able to get the enlish language pack installed;
This is what helped me fix it;
found a hotfix from Ms published last week (oct 23, 2007) Technet article 942903, version 1.0.
http://support.microsoft.com/?kbid=942903Find your fix there!
After downloading this fix ( mine is 64 bit) installed it.
It did a lot off actions.
Language pack en-US initial install from windows update after running this fix did fail again, but I captured the download and copied it away.[ for those not familiar look under c:\windows\softwaredistribution\download & find a file with 367 Mb size - 64 bit version-]
I renamed it to lp-en-us.exe (for archiving purposes handy too) & unpacked this; it created the "lp.cab". I advice you to do the same.
My advice too is to first reboot machine (might take a while still) after running the fix.
Then try to install the the language pack from "control panel/regional settings & language options" choose to install new language pack and browse to the previously saved "lp.cab"
It should now be recoqnized as the English language pack and install will start. It will give you a license acc. dialog here, accept and be patient for a while.
This worked out fine with me.
I guess the license dialoge might have been the killer when running under windows update....