WSUS 3.0 Install Fails “There is a problem with this Windows Installer package” Error

When trying to install WSUS 3.0 the installation stops with the error “WSUS Install Fails; There is a problem with this Windows Installer package”

To fix this issue there two things that needs to be done:

First:
From the command line execute the command: C:WINDOWSsystem32> lodctr /R

Second:

Decompressing the X:WSUS directory

Run the installation again.

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