There have been reported issues with users who user Intel rapid storage drivers, causing issues with windows update, mostly on x64 machines. If you are using them, try updating the driver is Device Manager, or alternatively, temporarily uninstalling
the drivers, update windows, then reinstall the intel driver.
This issue has been driving me crazy ever since I upgraded my wife's laptop from a 600 GB drive to 1TB. She had been developing bad sectors and experiencing extreme slowness at times, so it was definitely time to fix. I was barking up the wrong tree for
a while, assuming that when I cloned the drive over to the 1 TB drive, it copied the bad sectors and continued to show minor issues.*
Symptomatically, I went looking all over the web for fixes to each issue, finally landing in this area with the Windows Update problem. I hadn't noticed before that Windows Update wasn't running since the upgrade, so I tried all the various fixes recommended,
and the Microsoft FixIt stuff, and so on, to no luck. Finally, I came across a thread (not specifically this one, but since it's high on the search list I thought I'd post here) mentioning an HP laptop that was upgraded similarly and had the same issues.
Their fix was to install upgraded Intel Rapid Storage drivers, which there was a direct link to the HP version. I downloaded, rebooted and voila! Fixed!
*The exact symptoms I was experiencing: Windows Mail complained about corrupt calendar data and refused to start; Outlook 2010 was unable to provide search functions; Outlook 2010 would not display images in any emails, regardless of security settings;
Windows Update would not run claiming the service was not running.