That's exactly what I did: I renamed SoftwareDistribution through the command prompt (started it as Admin) after I stopped wuauserv with the net stop command. Again, Windows Update now starts up, but I've been unable to update my MSE via Update Definitions
in the program itself - it just returns error 80248014. I even restarted my PC after making the change, and the error was still there.
EDIT: I am still in somewhat of a panic BECAUSE my MSE cannot update. I rarely use Windows Update for other things, but yesterday, I was unable to update my MSE due to to 80248015. After renaming the SoftwareDistribution folder in an attempt to fix it, MSE returns error 80248014 instead. Hopefully I described the problem clearly and you can see why it's nothing to scoff at. There was another person with the same issue as well.
EDIT2: I tried to recreate the issue on a rarely used Win7 Home Premium 64 bit (same OS as the desktop facing this issue) laptop that I have. However, to my surprise, not only did Windows Update start upon loading the desktop screen without any errors, it was ALSO able to update MSE immediately. Hitting 'update definitions' in MSE on the laptop likewise returns no errors. So I'm completely stumped right now.