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pls see the next thread WINDOWS UPDATE FAILED
can probably solve your problem
Hans Peter

Hello all the 50 and 100% CPU runners…
it is not me that has found the problem and its solution, but finally this is quite simple:
The problem seems to be caused by the UPDATER expecting a patched EXPLORER in order to run. But the updates for the explorer are in the UPDATER. So the relevant SVCHOST process is running in circles, forever.
Go to the Microsoft site for Explorer 8 and download that again (there are some pitfalls as you have Explorer 8 already installed). The RE-installation first deletes the existing Explorer and then restarts. Within the boot process is the installation for the NEW Explorer running (can take 5 to 10 minutes). It installs Explorer8 after checking for malware, the downloads all relevant updates of Explorer. Finally your set up, and your CPU load is down to idle, at 1-2 %. You can now download all the remaining updates without problem.

One must expect that the next batch of updates will do the same, as Microsoft seems not to be solving the problem for us…
Have fun
Hans Peter