Hi Zulusw,
What was the exact error message from windows updates?
Follow the steps as mentioned below to check for error message from windows update history:
1) Click on start, type windows update
2) Click on windows update
3) Click on View update history
4) Double click on failed update (service pack 1)
5) Note down the error message
Method 1:
How to troubleshoot a problem by performing a clean boot in Windows Vista or in Windows 7
http://support.microsoft.com/kb/929135
Note: Follow step 7 to place the computer on its usual way once the clean boot process is completed.
Temporary Disable or uninstall your security software
Note: Antivirus software can help protect your computer against viruses and other security threats. In most cases, you should not disable your antivirus software. If you do have to temporarily disable it to install other software, you should re-enable it as soon as you're done. If you are connected to the Internet or a network during the time your antivirus software is disabled, your computer is vulnerable to attacks.
Method 2:
Troubleshoot problems installing a service pack for Windows 7http://windows.microsoft.com/en-us/windows7/troubleshoot-problems-installing-service-pack
Try installing service pack 1 through windows updates.
Reply back with more information to assist you