Arcserve Fails to Populate VMware VMs after Windows Update (kb2661254)

After updating my backup server with the latest MS updates, I found that my backup jobs started to fail. The kb2661254  update will block cryptographic keys that are less than 1024 bits long and as you may have already guessed Arcserve Keys are less that 1024 bits.

Microsoft has released a advisory article showing a workaround, but the quickest way to fix the issue is to uninstall the update .

1. Open Installed Updates by clicking the Start button , clicking Control Panel, clicking Programs, and then, under Programs and Features, clicking View installed updates.
2. Click the update that you want to remove, and then click Uninstall.  If you are prompted for an administrator password or confirmation, type the password or provide confirmation.

http://support.microsoft.com/kb/2661254

Once you have uninstalled the Update restart the server and Repopulate the database using ARCserve VMware Configuration Tool.