I've just seen the same issue and found that only one update was required to fix it: IE8. well, actually, just to get Windows Update to allow me to install IE8 required two other updates: KB898461, the update that installs a permanent copy of the Package Installer and An update for Windows Genuine Advantage But I verified that those updates had nothing to do with correcting the issue. It was all IE8 (I did mark the checkbox during the IE8 install that causes it to install updates, so that could be required...perhaps RTM IE8 sans updates would not be sufficient to correct the bug). ***Update*** I reinstalled and downloaded the IE8 install (rather than using Windows Update or Microsoft Update). This allowed me to have IE8 literally be the only thing updated and this time I did NOT mark the checkbox to install updates. It fixed the issue. So all you need to do to work around the Control Panel > User Accounts script error is install IE8.
