Windows 7 is fully automated for drivers and important Security and Performance patches which are delivered via Automatic Windows Updates. I would install all Important and Optional Updates after enabling Automatically deliver drivers via Windows Update (Step 3).
Set Updates to Automatic and to receive recommended the same as Important.
Windows Updates causing issues happens less than one in a million.
In your case the hang is likely caused by an issue that can be traced using the Troubleshooting Steps for Windows 7
including establishing a Clean Boot as suggested by Mark, however you should leave your AV, gadgets, sync to start with Windows.
Users get in trouble when they try to apply the old XPired rules for Windows which no longer apply to the first fully automated OS.