Firewall blocking all windows and MSE updates

Two ideas that come to mind are

1) Are we dealing with the official DVD here from Microsoft? Or a torrent download? etc...? What is the source install medium and where is it from?

2) It could be something in your environment which thus forces the need for the default firewall to be closed but I still can't think of anything. All that is needed for Windows Update to be successful is for Host Process for Windows Services (svchosts.exe) to have permission to access the internet. Nothing else is required. Not even I.E. any longer, on Windows 7.

The Windows Firewall allows that at default so the problem is very strange indeed, unless unofficial install media was used. (For example, modified version of Win 7.)

If you are using a custom automated configuration script in I.E. settings for lan settings as many corporate environments do, that may be causing the issue.

Further to the last post:
I have run the Norton Removal tool just in case (three times actually). I rebooted and then attempted to update both MSE and Windows. It failed again, this time with error code 0x802440c.
I switched off the firewall and both programs immediately updated with no fuss.
There's no 3rd party software anywhere on the system, as far as we know we're not running a proxy server.
I have tried altering the LAN settings to automatically detect settings as suggested by an MS help page for that error code, but it didn't make any difference.
Turning the firewall on and off seems a clunky way of updating, but we're out of ideas.

This page may help sort the issue. It's for XP but the suggestions are applicable to 7 too.

0x8024402c Windows Update error - FIND a Solution HERE in this article!

Especially suggestion two done in I.E. settings instead. (WU uses I.E. settings, even though I.E. doesn't need net permissions for WU to work.)

Or if I was admin of the lan, I'd put the free version of ZoneAlarm on machines and disable Windows Firewall - even without the error happening. Then make sure Host Process for Windows Services is allow internet access.

I am having the exact same issue with my computer after factory resetting it. Was this issue ever fixed and can you tell me how?