Update
In going through this, I have discovered that it is Act 7 that needs the SQL Server. This is amusing because after a brief try of Act 7, I reverted back to Act 5 (e.g. I don't use Act 7 any more). But to not foul things up, I went ahead with still trying to fix this.
I started with the link in CoasterMatt's post and DL'ed the update manually
from MS. There were three to chose from on the MS site and naturally it was the third one that was for my computer (they are all "SQLServer2005-KB948109-XXXX-ENU", and the three variations are "IA64", "x64", and "x86" - "x86" is the one that worked).
I went through the necessary steps for the hot fix and it installed correctly. I rebooted the computer and when it came back up, Windows Update STILL said it wanted to install the update. I double checked and indeed, it was the KB948109 update that Windows Update is looking for. While I did reboot after the install, I am going to try rebooting a couple of times when no one is in the office (since my computer serves as the office "server," it is very disruptive to the office to have me rebooting).
So, I have hidden the update for now. When our wandering IT guy comes in again (we only bring him in on an "as needed" basis), I will ask him about this.
Thanks again to all that offered assistance!