Hello Ron,
Thank you for keeping us updated on the status of the issue.
I am sorry for late response.
I would suggest you to try following methods and check if it helps.
Method 1:
Open the Windows Update troubleshooter
http://windows.microsoft.com/en-IN/windows7/Open-the-Windows-Update-troubleshooter
Method 2:
Disable Security software and check.
http://windows.microsoft.com/en-us/windows/disable-antivirus-software
Important Note: Antivirus software can help protect your computer against viruses and other security threats. In most cases, you shouldn't disable your antivirus software. If you have to temporarily disable it to install other software, you should re-enable it as soon as you're done. If you're connected to the Internet or a network while your antivirus software is disabled, your computer is vulnerable to attacks.
Method 3:
Please use these steps and check if issue persists.
a) Click on “Start” and type “cmd” (without the quotations).
b) When you see the “cmd” icon, Right Click on it and select “Run as administrator”.
c) On the open Command Prompt window copy and paste the commands (all at once) –
net stop wuauserv
net stop cryptSvc
net stop bits
net stop msiserver
ren C:\Windows\SoftwareDistribution SoftwareDistribution.old
ren C:\Windows\System32\catroot2 catroot2.old
net start wuauserv
net start cryptSvc
net start bits
net start msiserver
pause
d) Wait for the process to complete.
e) Close the Command Prompt.
Now, go to Windows Update and check.
Method 4:
Steps to follow before you install Windows 7 SP1 and Windows Server 2008 R2 SP1 from the Microsoft Download Center
http://support.microsoft.com/kb/2505743
Note: Any data files that are infected may only be cleaned by deleting the file entirely, which means there is a potential for data loss.
Additional Information:
Troubleshoot problems with installing updates
http://windows.microsoft.com/en-us/windows/troubleshoot-problems-installing-updates#1TC=windows-7
I hope this information helps.
Please do let us know if you need any further assistance.
Thank you