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I downloaded the patch and tested on an XP VM. It worked fine, so you may want to re-download the patch and re-deploy it.
Thanks for the feedback Adam.
I found the source of my problem, but not the solution yet.
The MS13-060 patches for both Windows XP and Server 2003 are being blocked from execution in my network by McAfee Host Intrusion Prevention. McAfee log shows "Attack type: W32\Yunsip Infection" when trying to execute the patches. A scan of the executables with McAfee AntiVirus finds nothing, so I suspect it is a flawed HIPS Signature causing the issue.
Did you ever check with McAfee to see if the problem was with their active protection causing this, or have you found any solution?
Yes, our HBSS System Administrator confirmed that MS13-060 installation was being blocked by the McAfee Host Intrusion Prevention module. There was a specific .DLL that was flagged as containing the Y32\Yunsip infection. A custom policy was implemented to allow the .DLL extraction.
I'm glad you were able to workaround it. Thanks for confirming.