I continued to look for an answer to this and stumbled upon this article.
http://support.microsoft.com/kb/822798
Method 3 is what fixed my problem. It seems the catroot2 folder contents
were corrupted. As soon as I renamed it and restarted the cryptsvc service,
I tried Windows update again and glory be, it took off and uodated just fine.
I feel like Microsoft ought to send me some free software or something for
figuring out what was wrong with their software. :-) It seems bizarre that
you can search their website or the TechNet website with this error code and
get "No results found". I guess it's not important enough in the realm of
things for them to post anything about it. It just wasted several hours of
my day. But who am I? Just a lowly system analyst that works with their
software 8 hours a day, 5 days a week, 50 weeks a year. That's all. :-) I
hope this helps someone else.