With all due respect, this has nothing to do with Windows Update functionality if SP1 has successfully installed. Try posting in the Programs forum instead: http://answers.microsoft.com/en-us/windows/forum/windows_7-windows_programs
Free unlimited installation and compatibility support is available for issues related to Windows 7 Service Packs. Availability of chat, phone or e-mail support differs depending on your geographic location. Some issues may require more advanced support for which there may be a charge: https://support.microsoft.com/oas/default.aspx?&gprid=14496&&st=1&wfxredirect=1&sd=gn
Good luck!
~Robear Dyer (PA Bear) ~ MS MVP (IE, Mail, Security, Windows & Update Services) since 2002 ~ Disclaimer: MS MVPs neither represent nor work for Microsoft