I had to do of the following with one machine:

Set Background Intelligent Transfer Service to Automatic and verify the Status is Started. 
Click Start. 
Choose Run. 
In the Run box, type services.msc. 
Click OK. 
Find the Background Intelligent Transfer Service service, and right-click to select it. 
Select Properties. 
In the Startup Type list, select Automatic. 
Verify the service Status is Started. 
Click OK.

 Set Event Log service to Automatic and verify that the Status is Started 
Click Start. 
Choose Run. 
In the Run box, type services.msc. 
Click OK. 
Find the Event Log service, and right-click to select it. 
Select Properties. 
In the Startup type list, select Automatic. 
Verify the Service status is Started. 
Click OK.



 Re-register the Windows Update DLL with the commands below 
Click Start, click Run, type cmd, and then click OK. 
Type the following commands. Press ENTER after each command.
regsvr32 wuapi.dll
regsvr32 wuaueng.dll
regsvr32 wuaueng1.dll
regsvr32 wucltui.dll
regsvr32 wups.dll
regsvr32 wups2.dll
regsvr32 wuweb.dll

Register qmgr.dll 
Click Start. 
Choose Run. 
In the Run box, type regsvr32 qmgr.dll. 
Click OK.


Register qmgrprxy.dll 
Click Start. 
Choose Run. 
In the Run box, type regsvr32 qmgrprxy.dll. 
Click OK.

Attempt to run Windows Update


I belive some malware / spyware had jacked up the machine in an attempt to
 prevent if from being updated and having the security patch applied.
So it may also be a good idea to then scan your machine for viruses and spyware / malware.