I thought I should mention that after encountering this problem of Windows Update refusing to work saying that it's service hasn't been started, I managed to FINALLY fix MY issue by doing what the original poster actually alluded to:
"I found something online where it says to type services.msc and stop it and go to c/windows/softwaredistribution and delete the files and then start the service so then ...." (the service referred to is Windows Update service)
All the other many supposed solutions I found online (like those having to do with Intel Rapid Storage Technology Drivers) did not help. My problem occurred after Windows 7 became corrupted (for the first time in years) and I had to do a partition restore from Acronis True Image Home 2011. The restore worked other than Windows Update - which is a pretty big failing. Nevertheless, my trust in Windows 7 has been severely damaged.