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Will SchmidtFlag for United States of America

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Windows cannot run updates

A customer brought in a computer that I re-installed the operating system (Windows 7 Home Premium 64bit) and the installation went fine but now  after the computer starts up the processor runs at 100% and a lot of memory is being used.  As soon as I shut the update services the processor goes back down to 1 and 2 percent and the memory drops back to around 700 or 800 mb (normal).  Plus Windows will not do any updating at all. It will not find updates, will not download them and will not install them.

I have disabled the update services, deleted the folders and files in sofware Distribution>Data Store &  sofware Distribution> Download Folders but that has not helped.
   
Attached is a snapshot of the processor and memory usage
Any help would be greatly appreciated
Capture.PNG
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I did as you instructed but it still acts the same - processor running 100% and memory at 2.5 gb and stuck on "searching for updates"
 Another interesting thing is that Windows shows all processors running at Zero percent
See attached file
Capture.PNG
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Good Morning!
I am running Windows 7 Service pack one.  Since this is a fresh copy of the operating system, I am assuming it has no viruses or malware.  Just to be sure I re-installed the second time.  
    I cannot go to an earlier point in time because the system has just been freshly installed.
    I am going to work with the suggestions that have be given this morning and get back with you.
Hello
I have tried all of the suggestions and the computer is still doing the same thing.  the processor runs at 100% and after a couple of hours it loses internet connection (i assume because of over-heating) and it continually says "Checking for updates" and never goes any further.
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Ok I can do that, no problem.  i am thinking about installing windows vista first and then updating to windows 7 because this was the original operating system when the computer was new.  Someone installed Windows 7 later.  (both product keys are on the computer).  What do you think of that idea?
Unless you can only activate Windows 7 if you upgrade from Vista, I wouldn't do it that way. A clean installation of the newer OS is almost always better.
beemmer--
Do you know that the PC is capable of running Win 7?
It was running windows 7 when it came to my shop and it had been upgraded to windows 7 sometime in the past.  The customer says that they purchased this computer about a month ago.  It appears this is a computer that was upgraded to windows 7 to make a better sale and then it possibly has never did updates until it came here.  I am going to work with it again tomorrow.
Good morning
Here is the update on my issue:  Out of curiosity I decided to install windows vista just to see what it would do.  5 minutes after the installation, it was downloading 114 updates all on it's own.  amazing.  After all the updates are in place I am going to do an upgrade to windows 7 and see how it acts.  If it doesn't act right I am going to wipe the drive again and install windows vista and be done with it.
  I am leaving this session open and will let you know how it goes
Thank you all for your help on this issue.  Evidently the computer is not compatible with windows 7.  I installed widows vista and everything went wonderful.  When I attempted to update to windows 7 nothing worked.  The computer is now back to windows vista and the customer is happy with it.
Thanks for the update and I was happy to help.
beemmer--
Glad to have helped.