Hi Geri,
The error code 8007065E you're getting whenever installing the KB2868038update might be due to a variety of reasons. It can be due to a slow internet connection or a system-level conflict.
That being said, make sure that you have a stable internet connection when installing updates. You may consider running a speed test to make sure that you're able to install an update properly.
You may run the Windows Update Troubleshooter to find and repair problems in installing an update. Just choose the link appropriate for Windows 7.
If the issue persists, you can manually install a Windows update by using the Microsoft Update Catalog. Key in the KB update in the Search field to be able to get the appropriate downloads for it.
We'll be waiting for your response.
Regards.