I am questioning the same issue(s) too. First, is this a legitimate MS update? Second, my auto update is also set to check with me before downloading and installing updates. Yet, it is not unusual for MSE updates to be updated without my permission. Is there some MSE update option that overrides the Windows option? Where would I change that MSE option? In this day and age, it causes me to feel angst when my PC is doing WHO KNOWS WHAT?
Yes, SP1 is installed.