Resolution:
Check for security software
Try temporarily disabling any security software, such as firewalls, anti-virus, anti-spyware etc. Remember to re-enable the software when done.
Microsoft Knowledge Base Article
Otherwise, try following this very comprehensive Microsoft Knowledge Base article
http://support.microsoft.com/kb/906602/en-us
Manual Updates
If that doesn't work try downloading each update manually and saving to the desktop. Then try installing. If they still don't install, boot into safe mode.and try again.
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