Hi,
The moment I uninstall this hot fix (KB929729) my webservice starts working
if I
install this hotfix the webservice returns the response with followng
error:System.Net.WebException: The underlying connection was closed: An
unexpected error occurred on a receive.
Please note this error occurs only in .net 1.1 and VISTA OS, it doesn't
occur in .net 1.1 and XP.
Please let me know what is there in hotfix which I could handle in my .net

I googled it found following steps which may solve your problem

1) Instead of using Windows Update, download the KB929729 package from here:
http://www.microsoft.com/downloads/details.aspx?FamilyId=7EEA368D-7B82-4583-8537-30351718A4E9&displaylang=enhttp://www.microsoft.com/downloads/details.aspx?FamilyId=281FB2CD-C715-4F05-A01F-0455D2D9EBFB&displaylang=en
Do not install yet.

2) Run cleanup tool:
http://astebner.sts.winisp.net/Tools/dotnetfx_cleanup_tool.zip

and select remove (cleanup) .NET Framework 1.1 from the dropdown list.

3) Download the .Net framework 1.1 redistributable package from here
http://www.microsoft.com/downloads/details.aspx?displaylang=en&FamilyID=262d25e3-f589-4842-8157-034d1e7cf3a3

and install it.

4) Download the .Net Framework 1.1 Service Pack 1
https://www.microsoft.com/downloads/details.aspx?familyid=A8F5654F-088E-40B2-BBDB-A83353618B38&displaylang=en
and install it.

5) Finally, launch the KB929729 installer and it will work:




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