I had the other hotfixes released on August 14th integrated with vLite on both tries, without KB932596, I got no errors, with it I got the errors I already mentioned, so it looks like KB932596 is causing all the trouble.
Yeah have the same problem. When the update (KB932596) is intergrated using vLite it gives me an error during install, along the lines of a component failing to instal and on the next boot up informs me that the OS should be reinstalled. Without the update using all the same settings as before the error does not occur.