I have 3 brand new Dell computers, 2 laptops and 1 desktop. They are all having the same problem. I have already wiped the hard drives and reinstalled the OS from the factory image.
Out of the box, I install Microsoft System Essentials. That installs fine. I then apply all available Windows Updates. It applies most of them, but then starts to fail on the last few. I do them 1 at a time, get 1 or 2 to apply (rebooting in between), but then can't get any of the last 3 to apply. I get an 800706F7 error.
I have tried all of the usual work-arounds. It appears to me that there is a bug in one of the Windows updates that causes the Windows Installer to fail after that is applied. Anyone have any ideas?