I have ran into this about less than a month ago.
The service was not found in services. I then looked at this Windows Update Service not Running - Microsoft Answers
Please take a look at the top post by Morten S. Petersen
. That was the post that did it for me. I ran it on Windows Vista and it work. However it will work on Windows 7 too.
It will delete and restart services that are related to Windows Update services.
As always please back up your files and important documents.