Update strangeness

I just reformatted my hardb disc and reinstalled windows. I immediately
started trying to update and the first update I was told I needed was "Update
for Background Intelligent Transfer Service (BITS) 2.0 and WinHTTP 5.1
(KB842773)". Windows Update downloads it and says that it installs, in the
Install History it is listed as "Successful" but then when I run Windows
Update again it says that the file has been downloaded but not installed. It
then gives me the option of clicking on Continue to install and the whole
process starts over. I've located the file in the Windows directory but I
can't install it manually from there. When I try to go to the Windows
Download Center and download it manually IE says that the server can't be
found. Please help.