Hi,
let's start off with some troubleshooting to work on this issue. As Gerry explained in detail, the causes and possible solutions for the issue we will now need to get the Windows Update functionality to working state.
Here are some methods to try:
Method 1:
Step 1:
How do I reset Windows Update components?
The article also includes steps to Manually reset Windows Update components. Do read through the notes mentioned here performing the steps.
Important Follow the steps in this section carefully. Serious problems might occur if you modify the registry incorrectly. Before you modify it, back up the registry for restoration
(http://support.microsoft.com/kb/322756/ ) in case problems occur.
Step 2:
The next step would be to run the System Update Readiness Tool.
What is the System Update Readiness Tool?
Also refer, http://www.microsoft.com/en-us/download/details.aspx?id=20858
Method 2:
System File Checker is a utility in Windows that allows users to scan for corruptions in Windows system files and restore corrupted files.
Use the System File Checker tool to repair missing or corrupted system files
http://support.microsoft.com/kb/929833/en-us
Method 3:
Some users have confirmed that performing a clean boot also helps. A clean boot is performed to start Windows by using a minimal set of drivers and startup programs. This helps eliminate software conflicts that occur when you install a program or an update or when you run a program in Windows 8.1, Windows 8, Windows 7, or Windows Vista. You may also troubleshoot or determine what conflict is causing the problem by performing a clean boot.
How to perform a clean boot in Windows
Important: Do refer section- How to reset the computer to start normally after clean boot troubleshooting after you perform clean boot.
Here is an articlediscussing a simillar issue
Keep us informed on the status of the issue after performing the steps. We will be glad to assist.