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Use the Kb http://support.microsoft.com/kb/278674 to find if there is actually MSXML installed on the box or not.
The patch analysis function of BMC BladeLogic requires the Microsoft XML (MSXML) parser version 3.0 or later to be installed on the server where the RSCD agent is installed. You can install the RSCD agent on a computer where MSXML is not installed, but patch analysis will not function correctly until MSXML 3.0 or later is installed.
BLPatchCheck2.exe needs the MSXML to run.
Thanks Prabhat for your quick response.
Yes, MSXML is installed in Windows 2008 by default.
Refer to the below link for the same kind of discussion
Also refer to teh below link for reference
Thats what I meant that MSXML is already installed. I wanted to sound polite, so gave you the article to see that the MSXML is already there
Great help dear. The given article is really helpful to me in understanding the concept.