The JDK 7 setup does not run with update 2 or higher on a Windows 2003 Server.
Older Java 7 version can be installed. If you does not support the OS Windows
2003 anymore then there should be a clear error message. Currently the setup
terminate immediate. We have search many hour for the cause of the problem.
More information provided by the submitter:

When automatic update triggered an update to 1.7.0.3 from an 1.6.0.31 on a Window 2003 Server. After the restart and some additional downloads there occur the follow error message. check the screen shot chadgbhi.png.

Also attached jusched.log and java_install_sp.log error log files.