Windows 7: W7-64bit Feb-2013 Updates; KB2799494 Failed, Error Code 80070057

I have a HP DM4 Windows 7-64Bit notebook PC. I'm a very techy person and keep the machine very clean. I run Avast for A/V protection, run MalwareBytes from time-to-time to check too and both are clean. The machine's use is 90% for MS Office....mostly Outlook....with some web surfing. I even use CCLeaner to keep the temp clutter out.

Yesterday MS released a bunch of updates and I have never had any issue installing before.
All ~14 updates installed except KB2799494.
MS13-017: Vulnerabilities in Windows kernel could allow elevation of privilege: February 12, 2013
It gave me error code 80070057....so I downloaded MSI and ran on PC....same error.
Download Security Update for Windows 7 for x64-based Systems (KB2799494) from Official Microsoft Download Center
I did some web surfing and not much out there on it.
update error code 80070057 - Microsoft Community
For the above I did run SFC / SCANNOW and came back OK.
I even found this link through another thread that had the error referenced and recalled on other machines in past that .NET Framework could be corrupted and cause issues. The KB does not seem to be associated but I tried the MSI FIXIT and also .NET repair steps.....no change....still fails.
Error codes

I do have Horzion RollBack RX on the machine but usually only keep a week of so of previous snapshots.
I also religiously image my HDD with Macrium Reflect.
I mention the RX install because I can set a restore point and try suggestions and return to prior state very easily.

So, I am at my wits end on where to even start.....please provide suggestions.
Your help is most appreciated.

Regards,
Eric

Try to install patch again

Make a copy of C:\Windows\Logs\CBS\CBS.log (otherwise you can't open it)
Post that file and C:\Windows\WindowsUpdate.log as well

Zip them to make it smaller

Please follow the Windows Update Posting Instructions and post the requested data

Here you go....thx.

Note, when I ran the FIXIT MSI it looks like it reset alot of things and cleared all my update history...oh well. I re-ran the update try and attached are the logs.

Please run the SFC and CheckSUR - and post the logs.
The CBS log currently has little data of use in it.

Where is logs for SFC ?
What is CheckSUR ?

Please follow the Windows Update Posting Instructions

I'll go ahead and run System Update Readiness Tool (SURT)
I ran SFC and came back with no errors.
Under Windows\CBS attached is log after SFC...I assume this is the one/location for it ?

There are no significant problems in the SFC scan - although it did do a fair amount of work in the 12 minutes it was running.

The CheckSUR results may show more.

Going back to your originalCBS.log, there are a lot of minor (and some major) errors present in it - almost all to do with registry problems.
Have you perhaps been using a registry cleaner of some kind??
I see also that System Restore is apparently disabled - is this deliberate?