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windows 2008 r2 service pack 1 - hangs stage 2 of 3

I have a host server running windows 2008 r2 enterprise edition and a hyperV guest on the same OS. When I tried to install service pack 1, after restarting, it hangs for a long time at "Stage 2 of 3 Preparing to configure windows. Do not turn off your computer."

After almost 2 hours, it managed to complete but when I tried to login, it hanged again at "Applying User Settings"

I turned off the VM and restarted it. It went back to "Stage 2 of 3..." and is still running.

What could be the problem?
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frukeus
Asked:
frukeus
1 Solution
 
davorinCommented:
I had this problem a couple of times and always it was the cause of problem antivirus program (nod32 and TM).
Try to uninstall AV program while updating. Disabling it does not help, as with restart AV starts automaticaly. One time I was fast enough to connect to server thru computer management from another PC and I have stopped the AV service.
In event log do you have some errors?
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frukeusAuthor Commented:
I was unable to log into the server at all. It eventually did proceed to Stage 3 of 3 then show the normal windows login. But I was unable to login and RDP also does not work.
When I turned off the machine, it went back to Stage 3 of 3 this time.

I gave up and restored the VM from a backup.
This time I ran Windows 2008 R2 Service Pack 1 from a manual download and it worked.
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