Clear Windows update database and try to install the updates again. Run the ‘Fix it’ tool available on http://support.microsoft.com/kb/822798 and wait for it to reset the database.
If the problem persists, follow these steps:
• Click ‘Start’, type ‘services.msc’ in the search field and press ‘Enter’.
• In the list of services, look for ‘Background Intelligent Transfer Service’, ‘Cryptographic Service’ and the ‘Windows Update’ service and make sure they are ‘Started’. If not, right click and ‘Start’ them and try to install the updates again.
• If they were already started, stop the three services and ‘minimize’ the window.
• Now, click Start, click ‘Computer’, go to C:\Windows\Software Distribution, right click and ‘rename’ it to ‘Software Distribution.old’.
• Similarly, rename “C:\Windows\System32\Catroot2” to ‘Catroot2.old’. Do not change the ‘Catroot’ file.
• Close the window, pull up the Services window that you had minimized, start the three services mentioned above and try to install updates again.
Hope it helps.
Here’s to Good Karma - iYogi Active Response Team