It's an optional update and not required for the actual operation of the system or for getting updates.. Microsoft recently updated their "Notifications" tool to a newer version.. That's why you've got the new update listed. You can visit Windows Updates, do a "Custom" scan of the computer, then UNCHECK the box next to the listing which will display some text and a new check box.. Then place a CHECK mark in the box that says: "Don't show this update ever, ever again", then click on the "REview and Install Updates" link and the listing will be gone.
In our corporate situation, because we need a special login to access the internet, each time the Notification tool attempted to 'phone home', we got a login request.. It wasn't pretty.. Therefore, we removed the Notification tool from all our machines.
Hope this helps.
Windows XP Pro
How many times do we have to download this tool? It's listed in my Add/Remove Programs twice, and today I checked Windows Update and it is there again. I'm not having any problems getting Windows updates and I know that my O/S is genuine.