Okay so based on the facts that we received the same errors and that removing the windows update did not work for us because our working hard drives were not found
I am going to make an assumption that you have a SATA hard drive as I do. If that is the case than the drivers for the hard drive are the issue.
I will also assume that if you have a SATA hard drive that you also hae a fairly new computer that most likely does nto have a floppy drive.
IF you have a floppy drive, get out your MS reinstall CD and also your driver CD.
Use another computer to put the drivers for your hard drive on a floppy (a USB floppy would most likely be the best bet here)
Then when prompted to install windows over a previous installation (we are not reformatting your hard drive) you want to press F6 (or the equvalent for your install disk) to install drivers for your mass storage devce)
From here I cannot help you other than to say that we believe you will be fine to reinstall windows from here.
However, we were not lucky enough to have access to floppy drives.
SO wewere lucky enough to have a IDE hard drive in the attic. So we installed this as a secondary drive and installed windows on that hard drive. Be sure nto to chage the defalt drive from teh sata drive. when prompted what drive to boot from or install windows
to make sure it is the IDE drive.
From there we reinstalled windows on the SATA drive that was now the E drive.
We will disconnect the IDE drive, toss it back into the attic and were good to go.
We are actually working this fix right now and are not done but once we loaded windows to the IDE drive were are now able to access the SATA drive.