Cannot install any driver or windows updates, getting BSOD 0x0000007E

Welcome aboard, madbuddha.

Your basic problem is the dispaly driver, as the latest version is somehow unstable in cases. I would recommend you roll it back to an earlier one, a known good stable version, which I suggest usually, and in most of the cases it works.

• Download and install Driver Fusion.
• Reboot the computer in Advanced Boot Options, safe mode. Search Driver Fusion in your start menu, and remove all components of your nVidia display driver.
• Boot normally now. Go to Drivers - Download NVIDIA Drivers, Drivers > Beta and Legacy; search there with your cards particulars for GeForce 306.23 Driver, dated 13.9.2012 and install it.

A few problems are there with the storage driver, as I am seeing. A search revealed that you are using nForce as the chipset driver, and that includes nvstor.sys as the storage controller driver. You need to try to update nForce, as it contains not only the storage controller, but also network controller and a lot of other vital drivers.

Go to Drivers - Download NVIDIA Drivers, search for nForce, as per your motherboard's chipset specifications.

What is most important that you have SPTD.sys installed. Daemon Tools, Alcohol 120% and Power Archiver Pro uses SCSI Pass Through Direct (SPTD), which is a well known BSOD causer. Uninstall the program at first. Then download SPTD standalone installer from Disk-Tools.com, and execute the downloaded file as guided below :

• Double click to open it.
• Click this button only:
• 
• If it is grayed out, as in the picture, there is no more SPTD in your system, and you just close the window.

Let us know the results.

upload your MSINFO32.nfo file.

1. Click on the start button
2. Type "msinfo32" (without quotes) in the search bar of the start menu, click the resulting link. It will open the System Information window.
3. File>Save. In the "File Name" filed, put "MSINFO32" (without Quote), give the save location to desktop, and click the "save" button.
4. Give the time for processing, it will save a .nfo file on your desktop.
5. Zip it, and upload it following the instruction.

Also fill up your system specs.
See your system specs and fill it up here.

According to Carrona.org, STOP 0x0000007E: SYSTEM_THREAD_EXCEPTION_NOT_HANDLED
Usual causes: Insufficient disk space, Device driver, Video card, BIOS, Breakpoint with no debugger attached, Hardware incompatibility, Faulty system service, Memory, 3rd party remote control.

Disc space:

Code:

Drive    C:
Size    97.56 GB (104,751,689,728 bytes)
Free Space    14.27 GB (15,319,465,984 bytes)
------------------------------------------------------------
Drive    D:
Size    368.10 GB (395,249,184,768 bytes)
Free Space    36.29 GB (38,971,150,336 bytes)

Really insufficient. Either buy a new internal one, shift some data there, or follow it: Hard Disk Space - Free Up and Recover.

Device Driver: Driver Verifier - Enable and Disable
Run Driver Verifier for 24 hours or the occurrence of the next crash, whichever is earlier.

Video Card: Stress test the Graphics Card using Furmark.
Video Card - Stress Test with Furmark

BIOS: Search for an update.

Code:

BIOS Version/Date    American Megatrends Inc. 0902, 12/06/2010

Memory: Test your RAM modules for possible errors.
How to Test and Diagnose RAM Issues with Memtest86+
Run memtest for at least 8 passes, preferably overnight, per RAM module per slot.

Hardware Incompatibility: I am asking some hardware specialist to have a look.

Arc said:

Hardware Incompatibility: I am asking some hardware specialist to have a look.

Layback Bear suggests us:

Layback Bear said:

Using the OP Specs the hardware should work together.
Note: His 500W power supply should work if its of quality and has proper connectors. His video card takes 2 power connectors.
I think you have found a problem with hard drive space.
By the time you throw in page filing, hibernation,sleep ect.
his drive is full. Using my memory Windows 7 likes about 10 % wiggle room on the hard drive and I recommend 20%.

The GeForce 460 GTX has a minimum required power supply of 450W. If yours is a good quality one it may be ok, but is on the edge of the minimum. If your PSU has two 12V rails you should upgrade to one with a single 12V rail and I personally would go up to a 650W.
I have one with my own GeForce 460 GTX .

Can you update any of those latest crashes those are pointing nvidia display driver? We need to check something there.