There are no SQL Server instances or shared features that can be updated on this computer

when trying to install SQL 2008 R2 SP1 I get the error “There are no SQL Server instances or shared features that can be updated on this computer”.
What I have: SQL 2008 R2 64bit (version 10.50.2500) installed on Windows Server 2008 R2 64bit setup in a two-node failover cluster.
What I have done: Downloaded SQLServer2008R2SP1-KB2528583-x64-ENU.exe, ran it, the “System Configuration Check Report” shows all checks passed except for the “Engine_ResourceDLLUPdateRestartCheck” which it shows as “Not applicable”, I click next and check “I accept…” then click next.  Both check boxes are grayed out, but are pre-checked.  When I click “next” it gives the error above.
Possible Unknows: Another coworker is also working on the same project and could have installed something that I am not aware of.
I have seen numerous articles about this error, but they almost all have to do with the improper version of 32 versus 64 bit.  I have double checked to make sure its Windows Server 2008 R2 64bit and SQL 2008 R2 64bit. 
Any input would be greatly appreciated.