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Windows Update failing Win7 32-bit error 80070005

Gurus,

Have a 32-bit Win7 PC that will not update files. Today it says there are 18 updates. If I install them it finished saying that 10 succeeded, 8 failed and a restart is needed. Errors found:

Code 80070005
Code 8007371C
Code 9380001

If I restart on bootup it says it is rolling back the updates. If I check the log every one of the updates failed.
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I am installing as the local administrator. Attached are the results of the last two attempts:



Errors.txt
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I was googling that error and first and only hit was on the malwarebytes forum
http://forums.malwarebytes.org/index.php?s=a739aadc53e2c95e6cf546a6f1b1700f&showtopic=60323&st=40&p=304900&#entry304900

it talks about manually downloading or checking for infections, but that could be a one off.

what antivirus s/w are you using? perhaps that is interfering.

This does not say it applies to win7 but perhaps worth a shot anyways http://support.microsoft.com/kb/906602
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Michaelj42--I meant to put Windows Update log on the list
http://support.microsoft.com/kb/902093
I ran into a similar problem with a Windows 7 64-Bit PC. (Updates refusing to install, and failing with an error)

Try this:
1. Do the Windows Update again
2. For those that fail to install, on the right had side of Windows Update, click on the link to the Knowledge Base article for the the first one that failed.
3. From the KB article you should be able do a manual download and install of the specific update.
4. Repeat the process of each failed update.

After manually installing all the failed updates, run "Check for updates" again.
I ended up doing three things that ultimately fixed the problem.

1. Deleted SoftwareDistribution folder (with windows update service off)
2.  Ran subinacl as described in http://social.technet.microsoft.com/Forums/en/w7itprogeneral/thread/ee631f61-52d5-4f5e-9aa9-35d555c81fda
3. Ran Microsoft FixIt as described at http://support.microsoft.com/kb/971058

I had tried 1 & 2 before so perhaps it was step 3 that actually fixed it.

Thank you all for your contributions.