This patch is causing some computers to blue screen.
These steps should fix it:
1. Boot from your Windows XP CD or DVD and start the recovery console (see this link http://support.microsoft.com/default.aspx/kb/307654 on how to use recovery console)
Once you are in the Repair Screen..
2. Type this command: CHDIR $NtUninstallKB977165$\spuninst
3. Type this command: BATCH spuninst.txt
4. Type this command: systemroot
5. When complete, type this command: exit
Unless the machine has a Recovery Partition, in which case you will end up booting into the D:\Windows so the spuninst.txt won’t run…
Boot from a Live CD and manually do the steps listed. 
Steps courtesy http://www.dnforum.com/f77/stop-0x0000007e-0xc000001d-0×80537008-0xba4c33b8-0xba4c30b4-thread-408024.html
Update: Booting into last known good config after completing these steps.
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