Alternate Solution:
I had a server throwing the error. The original solution of renaming the folder didn't change the error.
Since it was Windows Update only that had been installed, I searched for the "Microsoft Update" website since the windows update website redirects you to the local computer's windows update in Control Panel.
http://update.microsoft.com/microsoftupdate/v6/vistadefault.aspx?ln=en-us
This installed the "additional Microsoft product update client" and basically wraps the Windows Only update client into the Windows and Microsoft update client.
Since I normally install the Microsoft Update client on all the computers that I manually update this was great to have resolved the error.
So Windows Update is for OS only updates, Microsoft Update does both OS and Application updates, like Silverlight (Netflix), Office, DirectX, Media Player, "dreaded IE version updates", etc...
Hope this works for someone else.