This same problem has been troubling me for over a week.
Yes, I had found KB316524, but it was absolutely no help.
Today I stumbled upon a very simple solution that anyone can do and does not
involve any registry editing. Here it is ...
1) Open Internet Explorer
2) Click on "Tools" (at top right) ... Select "Internet Options"
3) Click on the "Advanced" tab
4) Click "Restore Advanced Settings" button
5) Select "OK"
6) Close Internet Explorer
.... This re-sets IE so that Microsoft Update can be installed the "normal"
way.
It worked for me!
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