This error code can be triggered if you are low on disk space.
It can also fail if other updates are in progress.
We need to know which update it is and how big it is. It'll be KB followed by the update reference number.
Do check your hard drive space as well.
Please check this Microsoft article too. http://support.microsoft.com/ph/6527#tab0
You ask if you can delete the update and try again. Just a thought; how are you going to delete it if you can't install it in the first place?