I am having this same issue but the links that are posted are no longer current so if anyone knows what the solution is - I need it.

Hi

You can try disabling "Give me recommended updates the same way I receive important updates" in windows update since that sometimes resolves this issue.
Next try is to temprarely disable the firewall and try again.

Cheers

Try using WSUS Offline. I have used this and it works fine.

http://download.wsusoffline.net/

This starts to look a little fishy kb3094

Sfc with autorepair? Not typically first thing to try.
Then a patch for win7sp1? Could be very lucky guess.
Stop Windows services? Hmmm
Delete folder software distribution? Hmmm

No further questions and accepted as solution feels strange.

- The link you gave me to use for the Windows Update tool worked.  I did not do the sfc - it was a brand new copy of windows 7 installed on the computer. The tool updated and showed a new update installed with today's date - so for now it I think it is solved.  We'll see if it happens again.  I may be trying some of the other suggestions next if the next updates don't work.  I guess I need to ask - what settings should I have on the Windows update after running that tool?

VIcki

I googled for this tool which was recommended - Windows6.1-KB947821-v34-x64

that's what worked for me.
 
At least so far.  It may happen again.

Thank you for clarification.
Settings should be auto if you ask me but i wonder, are you really running service pack 1? This should be sp2.

Cheers

All I know is that I did a complete restore on both computers with the issue - a brand new copy of Win 7 and it still would not update correctly.  Pretty sure that was SP1 on the new install.  So this tool fixed it at least for now.  I am keeping an eye on these computers because we had some other really odd things happening - including files that would not download correctly at all - would pause and never get completely downloaded. After using this tool - they seem ok.