kfm: In the normal way of things, most of us will not get 2004 for a couple of months.
As I understand it: Microsoft's Software analyses your PC and sends the latest Update to those that they know are OK for it. Over the following months PCs with older or less usual combinations of hardware, will also get it. In the meantime M$ will be trying to ensure compatibility, which becomes more challenging, the older the PC is.
From your "Driver PNP Watchdog" warning, I would suggest that some piece of your Hardware does not "Yet" have a compatible Driver.
Relax - Sit back - it will come in the course of time