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I recently came across an issue where I needed MS Fax Services installed to test a particular scenario for the enterprise system I am working with. Apparently, in Windows XP SP3, the security database can be corrupted in such as way as to prevent you from installing certain services, including MS Fax Services. From http://support.microsoft.com:

You cannot add a Windows component in Windows XP

When you try to add a Windows component after you first install Microsoft Windows XP, you cannot add the component, and you may receive a message that is similar to the following:
Files Needed
The file ‘file_name’ on Windows XP Professional CD-ROM is needed.
Type the path where the file is located, and then click OK.

This problem occurs even though the file already exists in the C:\Windows\I386 folder. When you provide the path of the file, the error message reappears.

This problem occurs when you try to install one or more of the following Windows components:

• Accessories and Utilities
• Fax services
• Indexing Service
• Internet Explorer
• Internet Information Services (IIS)
• Management and Monitoring Tools
• Message Queuing
• MSN Explorer
• Networking Services
• Other Network File and Print Services
• Outlook Express
• Update Root Certificates
• Windows Media Player
• Windows Messenger

This page also provides you a link to a potential hotfix resolving this situation. Unfortunately for me, the Service Pack I have installed had a more recent copy of this this “hotfix”, so it wouldn’t install. Reading further down this page provides another glimmer of hope: Rebuilding the Security Database. The good ol’ fashioned reset button…

ESENT event IDs 1000, 1202, 412, and 454 are logged repeatedly in the Application log

To resolve this issue, use the procedure described in this section to re-create the local Group Policy file.

Important Implementing a security template on a domain controller may change the settings of the Default Domain Controller Policy or Default Domain Policy. The applied template may overwrite permissions on new files, registry keys and system services created by other programs. Restoring these policies might be necessary after applying a security template. Before performing these steps on a domain controller, create a backup of the SYSVOL share.

Note When you use the following procedure, your computer is returned to the original installation state where the Local Security Policy is not defined. You may have to start your computer in Safe mode to rename or move files. For additional information about how to do this, see Windows 2000 Help.

1. Open the %SystemRoot%\Security folder, create a new folder, and then name it “OldSecurity”.
2. Move all of the files ending in .log from the %SystemRoot%\Security folder to the OldSecurity folder.
3. Find the Secedit.sdb file in the %SystemRoot%\Security\Database folder, and then rename this file to “Secedit.old”.
4. Click Start, click Run, type mmc, and then click OK.
5. Click Console, click Add/Remove Snap-in, and then add the Security and Configuration snap-in.
6. Right-click Security and Configuration and Analysis, and then click Open Database.
7. Browse to the %TEMP% folder, type Secedit.sdb in the File name box, and then click Open.
8. When you are prompted to import a template, click Setup Security.inf, and then click Open.
9. Copy %TEMP%\Secedit.sdb %SystemRoot%\Security\Database.

Sounds daunting, but this is really straightforward… Regardless, be sure to backup the necessary files before doing this, or get some help from a tech-savvy friend or from Microsoft proper.

After performing these steps, I was able to install MS Fax Services. Hopefully this will help some of you out.