Update constantly offers this update to be installed. It says it has been suceessfully installed 7 times but is not on the uninstall list. Everything i've tried to do to fix this hasn't worked. It even goes so far as to say it is installing updates, do not turn this computer off. It is only doing phase 3. I have gotten no error messages with this. KB936181 pertains to the update of XML Core Services 4.0 SP2.

Read this link and install KB941833. See if you stop getting the update for KB936181

http://support.microsoft.com/kb/941833

This has happened to me and it wound up being the update that was in the Add and Remove programs. Not the usual windows update history page. Remove (delete) the update giving you repeated updates, restart computer and then re download it.
Hope this helps

I had already tried yours Jacee, but i tried it again, no luck. tpm, i tried your suggestion and it worked like a charm. Thank you both for your help.