From the tuturial (in this thread - above where it shows "click here for entire tutorial"), I actually started with Step IV (MS Fix it -- no luck). I immediately tried the "If you don't have BITS service or cannot run it, none of the previous method help..." option in Step V.
I followed the steps exactly - downloaded the BITSWIN7.reg file "and" the PSTools in order to extract the psexec.exe file in a temp folder, then ran the listed command in a DOS window (i.e., cmd.exe) as shown: psexec -s -i -d regedit. Imported the file from my temp and restarted the computer.
After restart, I opened Windows logo (i.e., Start button) --> Control Panel --> Administrative Tools (Myself, I LIKE THE VIEW of "Small icons" in Control Panel!!!) and then double-clicked on Services.
Partway down the list I finally saw: "Background Intelligent Transfer Service". I double-clicked on it to ensure it was set to Automatic and ensured the service was in fact started.
SO -- understand that you do not see BITS in "windows update", but it is an ESSENTIAL service you must have running in order for Windows update your computer with all those OS updates (along with Windows Installer ).
BTW: you can also see if it is there by opening up Task Manager and under the "Services" tab you will see "BITS".
FINAL NOTE TO ADD HERE. The above worked for me. HOWEVER - something didn't feel right and I ended up rebuilding the OS (from the recovery partition) back to factory specs -- OH what an improvement in performance!!! Yeah, I had a lot of patches to 'bring back up-to-date', but the PC I was repairing was nearly 10 times faster than if I had not rebuilt. IMO -- if a registry loses something as key as BITS, my gut tells me something else is probably wrong too - even if you recover it. Again, just my opinion and I haven't failed 'me' yet.
I hope this helps some.