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The KB 3004394 update that was dated December 10, 2014 can cause additional problems on computers that are running Windows 7 Service Pack 1 (SP1) and Windows Server 2008 R2 SP1. This includes the inability to install future updates. This new update is available to remove KB 3004394 from your computer.The uninstaller is located @ https://support.microsoft.com/kb/3024777
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This topic area includes legacy versions of Windows prior to Windows 2000: Windows 3/3.1, Windows 95 and Windows 98, plus any other Windows-related versions including Windows Mobile.
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Also it would be interesting to have a look on a dump file. Can you located one in C:\Windows and post it here?
You can get access to the C: drive via Paragon Rescue Kit Free or Parted Magic boot CD.