Try another attempt at updating by clicking the Windows Update shortcut on the Start Menu, please. When/if it fails, close Internet Explorer. Open the WindowsUpdate.log and scroll all the way to the bottom.

Are your referring to another attempt to install BITS again from the Windows Update site ? *STRONGLY* suggest that you download and install the free version of Avast antivirus first: [link] Register it so that they send you a serial number which is good for 14