Mr. Fixit's PC Upgrade and Repair
How to fix Windows 7 Update
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To Reset Windows Update Manually (32-bit users)

  1. Click START -> Control Panel -> Administrative Tools (may need to change View By: Catagory to Large icons) -> Services. This shows all services available in
    Windows.
  2. The services should be in alphabetical order.  Locate Background Intelligent Transfer Service (BITS).  Left click it once to select, then right click once and left click
    STOP.  This will stop the service. The status column will confirm it is not running.
  3. Repeat the steps for Application Identity Service, Windows Update Service, and Cryptographic Service.  All 4 services should now show not running.
  4. Close all windows.
  5. Click START -> All Programs -> Accessories.  Right click on Command Prompt and left click Run as Administrator. This will open the command prompt with
    Administrator privileges.
  6. At the command prompt, Type "ipconfig /flushdns" and press enter. This will delete the DNS cache.
  7. Type: del /q "%ALLUSERSPROFILE%\Application Data\Microsoft\Network\Downloader\qmgr*.dat" and press enter. Leave the Quotes in the command.
  8. Type: rmdir %windir%\SoftwareDistribution /s /q and press enter. This will delete the Folder.
  9. Type: sc.exe sdset bits D:(A;;CCLCSWRPWPDTLOCRRC;;;SY)(A;;CCDCLCSWRPWPDTLOCRSDRCWDWO;;;BA)(A;;CCLCSWLOCRRC;;;AU)(A;;
    CCLCSWRPWPDTLOCRRC;;;PU) and press enter.  This will reset the security descriptors for BITS.  This is why I created the Batch file.
  10. Type: sc.exe sdset wuauserv D:(A;;CCLCSWRPWPDTLOCRRC;;;SY)(A;;CCDCLCSWRPWPDTLOCRSDRCWDWO;;;BA)(A;;CCLCSWLOCRRC;;;AU)(A;;
    CCLCSWRPWPDTLOCRRC;;;PU) and press enter.  This will reset the security descriptors for Windows Update Service.
  11. Now we need to change directories. Type: cd /d %windir%\system32 and press enter. This will move you to the System32 Directory as indicated by the new command
    prompt. If you are using Windows 7 64-bit, change System32 to SysWoW64
  12. Type: rmdir %systemroot%\catroot2 /s /q and press enter. This will delete the folder.
  13. Type: reg delete HKLM\Components\pendingrequired /f and press enter.  If it is present, the command will reset Windows Update queue back to none.  Now comes the
    long part.  You'll need to re-register some Dynamic Link Libraries for Windows Update, one at a time.  
  14. Type: regsvr32.exe /s atl.dll and press enter.  Replace the name of the dll file in the command and repeat the command for urlmon.dll , mshtml.dll , shdocvw.dll ,
    browseui.dll , jscript.dll , vbscript.dll , scrrun.dll , msxml.dll , msxml3.dll , msxml6.dll , actxprxy.dll , softpub.dll , wintrust.dll , dssenh.dll , rsaenh.dll , gpkcsp.dll , sccbase.dll
    , slbcsp.dll , cryptdlg.dll , oleaut32.dll , ole32.dll , shell32.dll , initpki.dll , wuapi.dll , wuaueng.dll , wuaueng1.dll , wucltui.dll , wups.dll , wups2.dll , wuweb.dll , qmgr.dll ,
    qmgrprxy.dll , wucltux.dll , muweb.dll , wuwebv.dll , and wudriver.dll.
  15. Next,  type: netsh winsock reset and press enter.  This will reset Windows Update's network protocols.
  16. Now, the hard part is over and you can restart the services.  Click START -> Control Panel -> Administrative Tools -> Services. This shows all services available in
    Windows again.
  17. Locate Background Intelligent Transfer Service (BITS). Left click it once to select, then right click it once and left click START.  This will start the service. The status
    column will confirm it is running.
  18. Repeat the steps for Application Identity Service, Windows Update Service, and Cryptographic Service.  All 4 services should now show they are running. Don't worry if
    they do not start right away.  Some have a delayed start and some won't start unless Windows needs that service. Close Service Window and Control Panel then return
    to the command prompt window.
  19. Now, you need to cancel the Windows Update job queue.  Type:  bitsadmin.exe /reset /allusers and press enter. This will reset the Update queue for all users.
  20. Because of the changes you made to the system, the computer needs to restart.  Save your work before you do the next command.
  21. To restart the PC, Type: shutdown /r /f and press enter.

Once the Computer restarts and you are signed into Windows, Click Start -> All Programs -> Windows Update.  You will see that Windows Update thinks this is the first time
you are checking for updates.  Have it Check for updates.  This may take some time as Windows Update rebuilds it's database.  Now you can resume installing the updates.