Got this error recently on a Windows 7 32bit system while trying to do updates. Previously, Automatic Updates were enabled and it ended up in a Installing 3 of 3 loop.
To fix this, refer to Microsoft’s KB: http://support.microsoft.com/kb/900936
Run each of the following in a command prompt as Administrator:
netsh winhttp reset proxy
net stop wuauserv
net start wuauserv
Previous History
I have renamed SoftwareDistribution to SoftwareDistributionOld and ran updates again but this did not work.
Microsoft indicates it could be from WSUS, security program/application preventing SVCHOST from accessing Windows Update according to their article http://windows.microsoft.com/en-US/windows7/Windows-Update-error-8024402C.
I disabled Symantec Endpoint Small Business 12.1.2 and tried to run updates again but this failed.
I am now running a Malwarebytes scan to make sure there isn’t an issue with the computer such as malware preventing updates.
I manually had installed SP1 on this Windows 7 computer without issue also. I’ll report back what I find to resolve this problem.
Attempted http://support.microsoft.com/kb/900936 this fix, specifically:
netsh winhttp reset proxy net stop wuauserv net start wuauserv
This worked, updating blog post.