Well, I uninstalled all 34 language packs (if I counted right), that was 6.7 GB and took an hour and 45 minutes. I then tried to install service pack 1, and right at the end of installation, it showed fail with this error again. GRR. So, I then installed this new System Update Readiness Tool the Microsoft tech people had told me to get (and they were trying to help a bit, but didn't seem to quickly know about this language pack problem), and I restarted the computer.
Upon coming back, I had new updates available, and in my system properties showed "Service Pack 1" at the top. I am not sure if thus this did install correctly but showed an error or if it installed partially but still something is not right. I'm pretty confused. And by the way, the update readiness showed no errors.
I installed the 16 updates, but the new time zone update still continues to fail.
It would be nice to know how to get the service pack 1 installation to give a positive successful installation notification. At least for me, the uninstalling of the language packs gave the same result, even though service pack 1 seems to be installed now. (it shows on my list of installed updates also, but not in my update history)