Microsoft released updated versions of Windows Installer 3.1 to fix a problem that could cause Windows Update to hang or crash. The update only applies to Windows XP SP2 and Windows Server 2003. It's not quite clear to me whether this version of the MSI runtime is redistributable or has to be downloaded by each end user individually. I suspect the latter as it requires "Genuine Advantage" validation of your Windows copy on XP. The update is expected to be distributed via Windows Update in late May or early June.
For more information see:
Microsoft Knowledge Base
WSUS Product Team Blog