Hello,
Thank you for posting your query in Microsoft Community.
I understand that you get this error message " The NTVDM CPU has encountered an illegal instruction." while, perfroming Windows update. So, please follow the suggestions mentioned below to fix the issue.
Firstly, try to follow the KB article to perform clean boot on the computer because, putting your system in Clean Boot state helps in identifying if any third party applications or startup items are causing the issue. You need to follow the steps from the
article mentioned below to perform a Clean Boot:
How to perform clean boot in Windowshttp://support.microsoft.com/kb/929135
Note: Refer "How to reset the computer to start as usual after troubleshooting with clean boot" under more information to reset the computer to start as normal after troubleshooting.
If that doesn't help then, try to follow the link mentioned below to fix the issue.
Troubleshoot problems with installing updates
http://windows.microsoft.com/en-us/windows/troubleshoot-problems-installing-updates#1TC=windows-7
Hope this helps. Otherwise, write us back with the status of the issue and we will be happy to help you again.
Thank you