Event log yielded the following:
Faulting application svchost.exe, version 5.1.2600.2180, faulting module msi.dll, version 3.1.4000.2435, fault address 0x00012780.
Verify Windows Update and BITS Service settings:
1.Click Start->Run, type "services.msc" (without quotation marks) in the open box and click OK.
2.Double click the service "Automatic Updates".
3.Click on the Log On tab, please ensure the option "Local System account" is selected and the option "Allow service to interact with desktop" is unchecked. Check if this service has been enabled on the listed Hardware Profile. If not, please click the Enable button to enable it.
4.Click on the tab "General "; make sure the "Startup Type" is "Automatic". Then please click the button "Start" under "Service Status" to start the service. Repeat the above steps with the other service: Background Intelligent Transfer Service (BITS)
Re-Register the Windows Update DLLs << run the Batch file “SVCHostERR.bat” – or manually perform steps in this section.
Click on Start and then click Run, type: cmd and click OK.
In the command window type "REGSVR32 WUAPI.DLL" (without quotation marks) and press Enter.When you receive the "DllRegisterServer in WUAPI.DLL succeeded" message, click OK.
Please repeat these steps for each of the following commands:
Next stop the windows update Service by typing: “net stop WuAuServ”Rename the Windows Update folder: Click Start, Run, type: %windir% and press Enter.In the opened folder, rename the folder SoftwareDistribution to SD_Old.Restart the Windows Update Service. Click Start, Run, net start WuAuServ.