To everyone that has this problem...
I was able to fix this problem by some very unorthodox methods and I am not sure are necessarily the best way to do what was done. It would be nice if someone with the technical skills to write up a step by step that anyone could follow using software that is available to everyone.
In any case this is the solution in a somewhat abbreviated form:
1: Using a non-windows partition manager, I shrunk the main windows partition to allow about 1GB of unallocated space...
2: I moved the main windows partition so the unallocated space wat to its left (on the partition manager) and therefore accessible to the SRP (System Reserved Partition)...
3: I resized the SRP to include most of the unallocated space that was now available..
After rebooting Windows the update problem no longer existed since the SRP was now large enough for some time to come...
I realize that not presenting the details may be annoying issue but I'm sure this can be done more than one way and it is risky to do in any case and needs to be done using partition manager(s) that you feel comfortable with and by ALL MEANS have complete recoverable backup just in case things go wrong...