When you are trying to update or install a driver via CompMgmt.msc and click “Update driver”, nothing happens. Also, you get an errors in System log:
Event Type: Warning
Event Source: PlugPlayManager
Event Category: None
Event ID: 264
Client side device installation was not performed because the file "C:WINDOWSsystem32newdev.dll" was not found.
For more information, see Help and Support Center at http://go.microsoft.com/fwlink/events.asp.
Just extract NEWDEV.DL_ from distributive of Windows Server 2003 to %SYSTEMROOT%System32newdev.dll.