100% HDD usage when windows update

I dad has an Acer Aspire 2920 laptop with dual core processor, 1GB ram and 160 GB Hdd. Uptil recently, it ran Windows XP SP3 32-bit with no problems.

Yesterday, I formatted it with windows 7 ultimate 32-bit OS. Now, I cannot use the windows Update. When ever, i click on search for new updates, my ram usage and hard-disk usage spike to 100% and stays there. Also, internet is not being used.

I have tried waiting for up to 2 hours multiple times but without success.

Also, once, I start searching for windows update, I cannot cancel the search and also, on closing the window of updates, still the had-disk and ram usage continues. Then, my only option remains to stop it from the windows services.

I have tried, all the other process and only this windows update is the cause of the spike in hard-disk and ram usage. I am unable to do anything else on the laptop.

Also, as this is just installed, There are no viruses. Also, search indexing is on but the hard disk usage does not go beyond 20-30%. It spikes to 100% only when windows update service is on. So, please help me solve this problem.

See svchost.exe (netsvcs) using DataStore.edb

There is a KB that is mentioned, try that for sure.

Ok. No KB is installed in my system yet as from the new installation itself, windows update is not working. But I'll try the other method mentioned in the link and tell.