Drea WWWringer. I'm happy this worked for you. I can't take credit for the fix as it was just extracted from the Flavius post earlier, however it was burried in there and many people would have given up before getting to the BITSWin7.reg fix.
In my situation a client had a laptop that had failed to do windows updates for several months and his virus protection had lapsed. My initial quick scan with Microsoft Security Essentials (MSE) (free) found the Win32/Siref.AL and .AQ Trojans.
A second full scan overnight was clean, however after I applied the BITSWin7.reg fix and got the BITS services running (and updates working), I ran another quick scan using Malwarebytes (free version) and it detected and removed two Trojan.Zacess viruses in the registry! A final full scan with Malware bytes found no further infections.
It is often my experience when doing side jobs on infected computers that windows updates were not current and virus protection was not current. The other common case is someone gets a pop-up window warning that your computer may be infected (and not from their antivius program) and click a button ....DONE!
Lessons learned - update windows, keep virus protectin up to date, don't click on suspicious windows (use CTRL+ALT+DEL for task manager and stop the associated process and or browser, or hit the off button!), do full scans overnight from time-to-time, and scan with another program like Malwarebaytes when your PC is doing odd things. I often find malware using a second scanner that the resident scanner didn't find.
Sorry for the dissertation! Good luck!