The file you're most likely after is IE8-WindowsXP-KB2898785-x86-ENU.exe
http://www.microsoft.com/en-us/download/details.aspx?id=41404
For me at least the situation was worse than last month -- not only would update go into a loop searching for new updates, but with Auto-Update on, it would go into the same loop on its own, without visiting the update site. And while in that loop CPU use can max out depending on your system, at the least preventing the CPU from entering it's low power state, wasting electricity &/or battery life while making your system less responsive.
It was also a bit more of a challenge since the docs on Microsoft.com didn't reference this particular update, but an earlier one that doesn't help the update situation. The problem may be more wide spread, or word of the necessity of updating ie 1st may have spread, as Microsoft Download Center showed it as the top suggested download.
User anger definitely is more widespread, since it's impossible to ignore the coincidence of these problems happening just when Microsoft's making it's final push, dropping XP support.
Microsoft is also losing a bit of love BTW due to rumors that the Start Menu's back (not just the Start Button) in the next version of Windows due in 2015. Apparently it wasn't that necessary to do away with it after all.