I have downloaded Microsoft Fit It and that did not solve the problem.
I ran these scripts from the cmd prompt:
and that did not solve the problem.
With the guidance of a Geekstogo malware removal helper I just finished completely ridding my system of all sorts of malware, spyware, rootkits for a clean system, and Microsoft Update still won't work.
I edited my registry as suggested by http://support.microsoft.com/kb/913754, and this did not work either.