Hi Everyone.
I sold a new Lenovo g530 notebook and after few weeks it come down with a fault that Windows update is not working. I tried known cures for it, such as stopping service and renaming folder etc. I also tried Microsoft's own fix-it which does what I tried. It seems to install the updates but after reboot can not apply the updates and reverts to the before state. I will re install windows but wanted to find the cure if there is one. Thanks everyone.
http://support.microsoft.com/kb/949358#method3 (inplace upgrade maybe)
Also look at issues here:
http://support.microsoft.com/gp/windows-update-issues/en-gb
Otherwise, yes clean install will def fix it.