Yes - solution worked for the administration server - deleted files/folders as depiected and updated fine - workstations updated OK as well without any change to them.
BUT - (there is always a but ), we have workstations that are not part of an administrative managed group around thye country that will not update - error is similar - "corrupt files" - Version is WS 5.200. following the "fix" - "remove files and folders in the folder C:\Documents and Settings\All Users\Application Data\Kaspersky Lab\<name of the antivirus application>\5.0\UPDTemp" and updating again does not fix the problem... same error results .
Rebooted, overinstalled application and rebooted and tried update - same problem. Uninstall 5.200, download latest version 5.225 and install.... works fine. Problem is that this is a significant time work-around to overcome issue. Any further fixes suggested?