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First, please check in c:\windows\system32\ and look for a file named WindowsUpdate.log right after you run Windows Update. Scroll down to the bottom and see what the specific error is.
I have cleared odd Windows Update problems by doing the following:
1: rename c:\windows\system32\softwaredistribution to something else
2. delete c:\windows\system32\WindowsUpdate.log or move it somewhere else.
Let us know what happens after you try this and what the specific error is.
