Windows Server 2003 getting Microsoft Visual C++ Runtime Library Error on a VM Environment

Hello Experts!   I am suddenly getting a MS Visual C++ Runtime Library Error.  Program: (Blank)
I am clueless as to why this is now happening. As far as I know nothing was upgraded or Installed.  The message will keep showing up every 2 to 3 seconds and will not stop.  Every time I do something even as to moving the mouse the system hangs.  

VM Server has 4GB memory and 2 vCPU. Vsphere Client is 4.1.0 and Vmware ESXi is also 4.1.0

Also noticed that as soon as I logoff I can see a screen stating end Program Update.exe - could this be the cause of my problem?  I do not know this update.exe or where it is coming from.

Thank You in Advance
mp5jakeAsked:
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mp5jakeConnect With a Mentor Author Commented:
Found Service Control Manager issue Error ID: 7031
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