Solved Windows Update fails Error - 80246008

nikhilnh

New member
Local time
10:15 PM
Messages
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Windows Update fails, Error - 80246008

I have been having the Windows update problem ( Update Error 80246008) since June. I found this thread

http://www.sevenforums.com/tutorials/113399-windows-update-error-80246008-windows-7-fix.html?filter[3]=Windows%20Updates

and followed all the instructions, still the BITS service doesn't start. When I try to start the BITS service I get the following error message

"Windows couldn't start BITS on local computer. For more info refer system log and refer to service specific error code 2147024893".

When I looked at the System event log , it's filled with errors about BITS service. The two errors that appear repeatedly are

1) The Background Intelligent Transfer Service service terminated with service-specific error %%-2147024893

2) The BITS service failed to start. Error 0x80070003

Another thing that I noticed while following Step 2 of the tutorial is, The folder C:\ProgramData\Microsoft\Network\Downloader is present in my system , however I can't access it even using the Admin account. When I try to access it by double clicking on it, I get the following error message

C:\ProgramData\Microsoft\Network\Downloader refers to a location that is unavailable.

I have also followed the "Windows Update Posting Instructions" and the link to the CBS log file folder is given below. I have posted the link instead of attaching the file as the file size is more than 8 MB

CBS_Folder_logs



Any help to solve this problem is greatly appreciated.
 
Last edited:

My Computer

Computer type
PC/Desktop
Computer Manufacturer/Model Number
Custom build
OS
Windows 7 Home Premium 64 bit
CPU
Intel i5-4670K
Motherboard
Gigabyte Z87X-UD4H
Memory
Crucial Ballistix 16GB (PC3-12800)
Graphics Card(s)
EVGA NVIDIA GeForce GTX 750
Sound Card
ASUS Xonar DGX PCI-E GX2.5
Monitor(s) Displays
Dell U2311H
Screen Resolution
1920 x 1080
Hard Drives
Crucial M500 240GB SSD ( Primary),
WD Blue 500 GB,
WD Caviar Black 1 TB
PSU
Corsair HX750
Cooling
ZALMAN CNPS9500 (CPU) , Three cooling case fans.
Antivirus
Microsoft Security Essentials
Browser
Firefox, Chrome

My Computer

Computer type
Laptop
Computer Manufacturer/Model Number
Sony Vaio VPCEB47GM Laptop
OS
Win 7 Pro 64-bit
CPU
Intel i5 2.4 Ghz
Memory
8GB DDR3
Graphics Card(s)
Intel HD 3000
Sound Card
IDT High Definition
Monitor(s) Displays
15.6 WGXA Anti-Glare LED
Screen Resolution
1280x800
Hard Drives
640Gb 7200rpm
Antivirus
MSE
Browser
Opera (primary) with IE9 backup

My Computer

Computer type
PC/Desktop
Computer Manufacturer/Model Number
Custom build
OS
Windows 7 Home Premium 64 bit
CPU
Intel i5-4670K
Motherboard
Gigabyte Z87X-UD4H
Memory
Crucial Ballistix 16GB (PC3-12800)
Graphics Card(s)
EVGA NVIDIA GeForce GTX 750
Sound Card
ASUS Xonar DGX PCI-E GX2.5
Monitor(s) Displays
Dell U2311H
Screen Resolution
1920 x 1080
Hard Drives
Crucial M500 240GB SSD ( Primary),
WD Blue 500 GB,
WD Caviar Black 1 TB
PSU
Corsair HX750
Cooling
ZALMAN CNPS9500 (CPU) , Three cooling case fans.
Antivirus
Microsoft Security Essentials
Browser
Firefox, Chrome
Please download the Farbar Service Scanner from

Farbar Service Scanner Download

Right-click on the saved file and select 'Run as Administrator', and tick all the options, then click on the Scan button - copy and paste the report to your response.
 

My Computer

Computer type
Laptop
Computer Manufacturer/Model Number
Asus K52F or Lenovo B51-80
OS
Win 7 x64 Home Premium (and x86 VirtualBox VM)/Win10
CPU
i3 370M/i7 6500U
Motherboard
Asus/Lenovo
Memory
8GB - finally :)/8GB
Graphics Card(s)
it's an i3, dude!/dual Intel&nVidia
Sound Card
onboard
Monitor(s) Displays
15.6" built-in
Screen Resolution
1366x768/1920x1080
Hard Drives
750GB Seagate internal
Sundry external drives attached to other computers on the local network
1TB SSD on the Lenovo
PSU
n/a
Internet Speed
as much as I can get - usually on a dongle/phone, so <1MB/s
Antivirus
MSE/Defender
Browser
IE11/12/Edge/Chrome/FF(if I must)
Ran the FSS and here's the output

Farbar Service Scanner Version: 26-07-2015
Ran by Admin (administrator) on 14-09-2015 at 06:01:39
Running from "C:\Users\Nikhil\Downloads"
Microsoft Windows 7 Home Premium Service Pack 1 (X64)
Boot Mode: Normal
****************************************************************

Internet Services:
============

Connection Status:
==============
Localhost is accessible.
LAN connected.
Google IP is accessible.
Google.com is accessible.
Yahoo.com is accessible.


Windows Firewall:
=============

Firewall Disabled Policy:
==================


System Restore:
============

System Restore Policy:
========================


Action Center:
============


Windows Update:
============
BITS Service is not running. Checking service configuration:
The start type of BITS service is OK.
The ImagePath of BITS service is OK.
The ServiceDll of BITS service is OK.


Windows Autoupdate Disabled Policy:
============================


Windows Defender:
==============
WinDefend Service is not running. Checking service configuration:
The start type of WinDefend service is set to Demand. The default start type is Auto.
The ImagePath of WinDefend service is OK.
The ServiceDll of WinDefend service is OK.


Windows Defender Disabled Policy:
==========================
[HKEY_LOCAL_MACHINE\SOFTWARE\Microsoft\Windows Defender]
"DisableAntiSpyware"=DWORD:1


Other Services:
==============


File Check:
========
C:\Windows\System32\nsisvc.dll => File is digitally signed
C:\Windows\System32\drivers\nsiproxy.sys => File is digitally signed
C:\Windows\System32\dhcpcore.dll => File is digitally signed
C:\Windows\System32\drivers\afd.sys => File is digitally signed
C:\Windows\System32\drivers\tdx.sys => File is digitally signed
C:\Windows\System32\Drivers\tcpip.sys => File is digitally signed
C:\Windows\System32\dnsrslvr.dll => File is digitally signed
C:\Windows\System32\mpssvc.dll => File is digitally signed
C:\Windows\System32\bfe.dll => File is digitally signed
C:\Windows\System32\drivers\mpsdrv.sys => File is digitally signed
C:\Windows\System32\SDRSVC.dll => File is digitally signed
C:\Windows\System32\vssvc.exe => File is digitally signed
C:\Windows\System32\wscsvc.dll => File is digitally signed
C:\Windows\System32\wbem\WMIsvc.dll => File is digitally signed
C:\Windows\System32\wuaueng.dll => File is digitally signed
C:\Windows\System32\qmgr.dll => File is digitally signed
C:\Windows\System32\es.dll => File is digitally signed
C:\Windows\System32\cryptsvc.dll => File is digitally signed
C:\Program Files\Windows Defender\MpSvc.dll => File is digitally signed
C:\Windows\System32\ipnathlp.dll => File is digitally signed
C:\Windows\System32\iphlpsvc.dll => File is digitally signed
C:\Windows\System32\svchost.exe => File is digitally signed
C:\Windows\System32\rpcss.dll => File is digitally signed


**** End of log ****
 

My Computer

Computer type
PC/Desktop
Computer Manufacturer/Model Number
Custom build
OS
Windows 7 Home Premium 64 bit
CPU
Intel i5-4670K
Motherboard
Gigabyte Z87X-UD4H
Memory
Crucial Ballistix 16GB (PC3-12800)
Graphics Card(s)
EVGA NVIDIA GeForce GTX 750
Sound Card
ASUS Xonar DGX PCI-E GX2.5
Monitor(s) Displays
Dell U2311H
Screen Resolution
1920 x 1080
Hard Drives
Crucial M500 240GB SSD ( Primary),
WD Blue 500 GB,
WD Caviar Black 1 TB
PSU
Corsair HX750
Cooling
ZALMAN CNPS9500 (CPU) , Three cooling case fans.
Antivirus
Microsoft Security Essentials
Browser
Firefox, Chrome
That looks OK
I suspect that this may not show anything - but it does sometimes give a clue to such problems...
I need to see a full copy of the report produced by the MGADiag tool
(download and save to desktop - http://go.microsoft.com/fwlink/?linkid=52012 )
Once saved, run the tool.
Click on the Continue button, which will produce the report.
To copy the report to your response, click on the Copy button in the tool (ignore any error messages at this point), and then paste (using either r-click/Paste, or Ctrl+V ) into your response.x
 

My Computer

Computer type
Laptop
Computer Manufacturer/Model Number
Asus K52F or Lenovo B51-80
OS
Win 7 x64 Home Premium (and x86 VirtualBox VM)/Win10
CPU
i3 370M/i7 6500U
Motherboard
Asus/Lenovo
Memory
8GB - finally :)/8GB
Graphics Card(s)
it's an i3, dude!/dual Intel&nVidia
Sound Card
onboard
Monitor(s) Displays
15.6" built-in
Screen Resolution
1366x768/1920x1080
Hard Drives
750GB Seagate internal
Sundry external drives attached to other computers on the local network
1TB SSD on the Lenovo
PSU
n/a
Internet Speed
as much as I can get - usually on a dongle/phone, so <1MB/s
Antivirus
MSE/Defender
Browser
IE11/12/Edge/Chrome/FF(if I must)
Thanks Noel, I'll run the tool once I get back home.
 

My Computer

Computer type
PC/Desktop
Computer Manufacturer/Model Number
Custom build
OS
Windows 7 Home Premium 64 bit
CPU
Intel i5-4670K
Motherboard
Gigabyte Z87X-UD4H
Memory
Crucial Ballistix 16GB (PC3-12800)
Graphics Card(s)
EVGA NVIDIA GeForce GTX 750
Sound Card
ASUS Xonar DGX PCI-E GX2.5
Monitor(s) Displays
Dell U2311H
Screen Resolution
1920 x 1080
Hard Drives
Crucial M500 240GB SSD ( Primary),
WD Blue 500 GB,
WD Caviar Black 1 TB
PSU
Corsair HX750
Cooling
ZALMAN CNPS9500 (CPU) , Three cooling case fans.
Antivirus
Microsoft Security Essentials
Browser
Firefox, Chrome
That looks OK
I suspect that this may not show anything - but it does sometimes give a clue to such problems...
I need to see a full copy of the report produced by the MGADiag tool
(download and save to desktop - http://go.microsoft.com/fwlink/?linkid=52012 )
Once saved, run the tool.
Click on the Continue button, which will produce the report.
To copy the report to your response, click on the Copy button in the tool (ignore any error messages at this point), and then paste (using either r-click/Paste, or Ctrl+V ) into your response.x

Here's the output from MS genuine advantage diagnostic tool

Diagnostic Report (1.9.0027.0):
-----------------------------------------
Windows Validation Data-->

Validation Code: 0
Cached Online Validation Code: 0x0
Windows Product Key: *****-*****-VKFK6-HJCP3-RTTBX
Windows Product Key Hash: 2Huh9h0G6wc5SjwU7cGV35p5k/4=
Windows Product ID: 00359-OEM-8704646-75326
Windows Product ID Type: 3
Windows License Type: OEM System Builder
Windows OS version: 6.1.7601.2.00010300.1.0.003
ID: {9B19EF8B-CCB0-4A62-A8BE-E4AC32241E75}(1)
Is Admin: Yes
TestCab: 0x0
LegitcheckControl ActiveX: N/A, hr = 0x80070002
Signed By: N/A, hr = 0x80070002
Product Name: Windows 7 Home Premium
Architecture: 0x00000009
Build lab: 7601.win7sp1_gdr.150427-0707
TTS Error:
Validation Diagnostic:
Resolution Status: N/A

Vista WgaER Data-->
ThreatID(s): N/A, hr = 0x80070002
Version: N/A, hr = 0x80070002

Windows XP Notifications Data-->
Cached Result: N/A, hr = 0x80070002
File Exists: No
Version: N/A, hr = 0x80070002
WgaTray.exe Signed By: N/A, hr = 0x80070002
WgaLogon.dll Signed By: N/A, hr = 0x80070002

OGA Notifications Data-->
Cached Result: N/A, hr = 0x80070002
Version: N/A, hr = 0x80070002
OGAExec.exe Signed By: N/A, hr = 0x80070002
OGAAddin.dll Signed By: N/A, hr = 0x80070002

OGA Data-->
Office Status: 109 N/A
OGA Version: N/A, 0x80070002
Signed By: N/A, hr = 0x80070002
Office Diagnostics: 025D1FF3-364-80041010_025D1FF3-229-80041010_025D1FF3-230-1_025D1FF3-517-80040154_025D1FF3-237-80040154_025D1FF3-238-2_025D1FF3-244-80070002_025D1FF3-258-3

Browser Data-->
Proxy settings: N/A
User Agent: Mozilla/4.0 (compatible; MSIE 8.0; Win32)
Default Browser: C:\Program Files\Internet Explorer\iexplore.exe
Download signed ActiveX controls: Prompt
Download unsigned ActiveX controls: Disabled
Run ActiveX controls and plug-ins: Allowed
Initialize and script ActiveX controls not marked as safe: Disabled
Allow scripting of Internet Explorer Webbrowser control: Disabled
Active scripting: Allowed
Script ActiveX controls marked as safe for scripting: Allowed

File Scan Data-->

Other data-->
Office Details: <GenuineResults><MachineData><UGUID>{9B19EF8B-CCB0-4A62-A8BE-E4AC32241E75}</UGUID><Version>1.9.0027.0</Version><OS>6.1.7601.2.00010300.1.0.003</OS><Architecture>x64</Architecture><PKey>*****-*****-*****-*****-RTTBX</PKey><PID>00359-OEM-8704646-75326</PID><PIDType>3</PIDType><SID>S-1-5-21-1537793434-3649845648-241993423</SID><SYSTEM><Manufacturer>Gigabyte Technology Co., Ltd.</Manufacturer><Model>Z87X-UD4H</Model></SYSTEM><BIOS><Manufacturer>American Megatrends Inc.</Manufacturer><Version>F8</Version><SMBIOSVersion major="2" minor="7"/><Date>20140120000000.000000+000</Date></BIOS><HWID>F6B53207018400F4</HWID><UserLCID>0409</UserLCID><SystemLCID>0409</SystemLCID><TimeZone>Eastern Standard Time(GMT-05:00)</TimeZone><iJoin>0</iJoin><SBID><stat>3</stat><msppid></msppid><name></name><model></model></SBID><OEM/><GANotification/></MachineData><Software><Office><Result>109</Result><Products/><Applications/></Office></Software></GenuineResults>

Spsys.log Content: 0x80070002

Licensing Data-->
Software licensing service version: 6.1.7601.17514

Name: Windows(R) 7, HomePremium edition
Description: Windows Operating System - Windows(R) 7, OEM_COA_NSLP channel
Activation ID: 586bc076-c93d-429a-afe5-a69fbc644e88
Application ID: 55c92734-d682-4d71-983e-d6ec3f16059f
Extended PID: 00359-00174-046-475326-02-1033-7601.0000-1282015
Installation ID: 003645613544423715054770098614592325504590230103617504
Processor Certificate URL: SpcService Web Service
Machine Certificate URL: RacService Web Service
Use License URL: UseLicenseService Web Service
Product Key Certificate URL: PkcService Web Service
Partial Product Key: RTTBX
License Status: Licensed
Remaining Windows rearm count: 3
Trusted time: 9/14/2015 5:47:00 PM

Windows Activation Technologies-->
HrOffline: 0x00000000
HrOnline: 0x00000000
HealthStatus: 0x0000000000000000
Event Time Stamp: 8:6:2015 20:55
ActiveX: Registered, Version: 7.1.7600.16395
Admin Service: Registered, Version: 7.1.7600.16395
HealthStatus Bitmask Output:


HWID Data-->
HWID Hash Current: PAAAAAIABAABAAIAAAAEAAAAAgABAAEAHKKcdpJqvJrCG1zZ6PbuFmJMYNXE3trjXvB6ORQxfvgVFcj2

OEM Activation 1.0 Data-->
N/A

OEM Activation 2.0 Data-->
BIOS valid for OA 2.0: yes, but no SLIC table
Windows marker version: N/A
OEMID and OEMTableID Consistent: N/A
BIOS Information:
ACPI Table Name OEMID Value OEMTableID Value
APIC ALASKA A M I
FACP ALASKA A M I
HPET ALASKA A M I
MCFG
FPDT ALASKA A M I
SSDT PmRef Cpu0Ist
SSDT PmRef Cpu0Ist
SSDT PmRef Cpu0Ist
SSDT PmRef Cpu0Ist
DMAR INTEL HSW
MATS ALASKA A M I
 

My Computer

Computer type
PC/Desktop
Computer Manufacturer/Model Number
Custom build
OS
Windows 7 Home Premium 64 bit
CPU
Intel i5-4670K
Motherboard
Gigabyte Z87X-UD4H
Memory
Crucial Ballistix 16GB (PC3-12800)
Graphics Card(s)
EVGA NVIDIA GeForce GTX 750
Sound Card
ASUS Xonar DGX PCI-E GX2.5
Monitor(s) Displays
Dell U2311H
Screen Resolution
1920 x 1080
Hard Drives
Crucial M500 240GB SSD ( Primary),
WD Blue 500 GB,
WD Caviar Black 1 TB
PSU
Corsair HX750
Cooling
ZALMAN CNPS9500 (CPU) , Three cooling case fans.
Antivirus
Microsoft Security Essentials
Browser
Firefox, Chrome
That all looks fine - which leaves me clueless at the moment :(

back later.
 

My Computer

Computer type
Laptop
Computer Manufacturer/Model Number
Asus K52F or Lenovo B51-80
OS
Win 7 x64 Home Premium (and x86 VirtualBox VM)/Win10
CPU
i3 370M/i7 6500U
Motherboard
Asus/Lenovo
Memory
8GB - finally :)/8GB
Graphics Card(s)
it's an i3, dude!/dual Intel&nVidia
Sound Card
onboard
Monitor(s) Displays
15.6" built-in
Screen Resolution
1366x768/1920x1080
Hard Drives
750GB Seagate internal
Sundry external drives attached to other computers on the local network
1TB SSD on the Lenovo
PSU
n/a
Internet Speed
as much as I can get - usually on a dongle/phone, so <1MB/s
Antivirus
MSE/Defender
Browser
IE11/12/Edge/Chrome/FF(if I must)
Noel, as I had mentioned in my post earlier when I try to access C:\ProgramData\Microsoft\Network\Downloader folder I get an error message saying that the location is unavailable, even though I clearly see the folder being present.

Is it normal to get this error message when trying to access this folder ?

One of the error messages in the system event log

"The BITS service failed to start. Error 0x80070003" , when I googled it I got he following article

Issues with BITS

which tells that the Error 0x80070003 means Pre-Windows Vista: %ALLUSERSPROFILE%\Microsoft\Network doesn’t exist.

Is this why Windows update is not working ?

I admit that don't have enough knowledge , I am just taking a guess based on the google search results.
 
Last edited:

My Computer

Computer type
PC/Desktop
Computer Manufacturer/Model Number
Custom build
OS
Windows 7 Home Premium 64 bit
CPU
Intel i5-4670K
Motherboard
Gigabyte Z87X-UD4H
Memory
Crucial Ballistix 16GB (PC3-12800)
Graphics Card(s)
EVGA NVIDIA GeForce GTX 750
Sound Card
ASUS Xonar DGX PCI-E GX2.5
Monitor(s) Displays
Dell U2311H
Screen Resolution
1920 x 1080
Hard Drives
Crucial M500 240GB SSD ( Primary),
WD Blue 500 GB,
WD Caviar Black 1 TB
PSU
Corsair HX750
Cooling
ZALMAN CNPS9500 (CPU) , Three cooling case fans.
Antivirus
Microsoft Security Essentials
Browser
Firefox, Chrome
There are a number of possible reasons for that -
%allusersprofile% may be undefined on you machine
Does C:\ProgramData\Microsoft\Network exist? - that's where it should be.

Have you moved any system or User folder off the C: drive?
If you open an Elevated Command Prompt, and run the following command, what is the resulting prompt?

CD %allusersprofile%
 

My Computer

Computer type
Laptop
Computer Manufacturer/Model Number
Asus K52F or Lenovo B51-80
OS
Win 7 x64 Home Premium (and x86 VirtualBox VM)/Win10
CPU
i3 370M/i7 6500U
Motherboard
Asus/Lenovo
Memory
8GB - finally :)/8GB
Graphics Card(s)
it's an i3, dude!/dual Intel&nVidia
Sound Card
onboard
Monitor(s) Displays
15.6" built-in
Screen Resolution
1366x768/1920x1080
Hard Drives
750GB Seagate internal
Sundry external drives attached to other computers on the local network
1TB SSD on the Lenovo
PSU
n/a
Internet Speed
as much as I can get - usually on a dongle/phone, so <1MB/s
Antivirus
MSE/Defender
Browser
IE11/12/Edge/Chrome/FF(if I must)
C:\ProgramData\Microsoft\Network does exist. It's only the Downloader folder under the above directory that is not accessible , even though visible. I can't do anything with the folder, ie delete, rename etc. There's another folder called Connections under the same directory , which I don't have any trouble accessing.

CD %allusersprofile% in the elevated command prompt leads me to C:\ProgramData
 

My Computer

Computer type
PC/Desktop
Computer Manufacturer/Model Number
Custom build
OS
Windows 7 Home Premium 64 bit
CPU
Intel i5-4670K
Motherboard
Gigabyte Z87X-UD4H
Memory
Crucial Ballistix 16GB (PC3-12800)
Graphics Card(s)
EVGA NVIDIA GeForce GTX 750
Sound Card
ASUS Xonar DGX PCI-E GX2.5
Monitor(s) Displays
Dell U2311H
Screen Resolution
1920 x 1080
Hard Drives
Crucial M500 240GB SSD ( Primary),
WD Blue 500 GB,
WD Caviar Black 1 TB
PSU
Corsair HX750
Cooling
ZALMAN CNPS9500 (CPU) , Three cooling case fans.
Antivirus
Microsoft Security Essentials
Browser
Firefox, Chrome
Ah -
Open an Elevated Command Prompt, and run the following command

ICACLS %allusersprofile%\Microsoft\network /T

post the results.

Here are some instructions to make life easier :)
1) To open an Elevated Command Prompt Window (the ECP window), click on Start, All Programs, Accessories – then right-click on Command Prompt, and select Run as Administrator. Accept the UAC prompt.
2) To run the commands easier, highlight the block of commands, and right-click on the highlight – select Copy. In the CP Window, click on the black/white icon at top left – select Paste. The commands will run but may not complete the last command, so hit the Enter Key once.
3) To copy the results... click on the Black/White icon in the top left, and select Edit... 'Select All', and hit the Enter key - then use Ctrl+V or r-click+Paste to paste it into your response.
 
Last edited:

My Computer

Computer type
Laptop
Computer Manufacturer/Model Number
Asus K52F or Lenovo B51-80
OS
Win 7 x64 Home Premium (and x86 VirtualBox VM)/Win10
CPU
i3 370M/i7 6500U
Motherboard
Asus/Lenovo
Memory
8GB - finally :)/8GB
Graphics Card(s)
it's an i3, dude!/dual Intel&nVidia
Sound Card
onboard
Monitor(s) Displays
15.6" built-in
Screen Resolution
1366x768/1920x1080
Hard Drives
750GB Seagate internal
Sundry external drives attached to other computers on the local network
1TB SSD on the Lenovo
PSU
n/a
Internet Speed
as much as I can get - usually on a dongle/phone, so <1MB/s
Antivirus
MSE/Defender
Browser
IE11/12/Edge/Chrome/FF(if I must)
Noel, thanks for the help. I'll post the results, when I have access to my computer. Should have installed a remote login service on my home computer.
 

My Computer

Computer type
PC/Desktop
Computer Manufacturer/Model Number
Custom build
OS
Windows 7 Home Premium 64 bit
CPU
Intel i5-4670K
Motherboard
Gigabyte Z87X-UD4H
Memory
Crucial Ballistix 16GB (PC3-12800)
Graphics Card(s)
EVGA NVIDIA GeForce GTX 750
Sound Card
ASUS Xonar DGX PCI-E GX2.5
Monitor(s) Displays
Dell U2311H
Screen Resolution
1920 x 1080
Hard Drives
Crucial M500 240GB SSD ( Primary),
WD Blue 500 GB,
WD Caviar Black 1 TB
PSU
Corsair HX750
Cooling
ZALMAN CNPS9500 (CPU) , Three cooling case fans.
Antivirus
Microsoft Security Essentials
Browser
Firefox, Chrome
Noel, here's the output from the command that you gave

Microsoft Windows [Version 6.1.7601]
Copyright (c) 2009 Microsoft Corporation. All rights reserved.

C:\Windows\system32>ICACLS %allusersprofile%\Microsoft\network /T
C:\ProgramData\Microsoft\network NT AUTHORITY\SYSTEM:(I)(OI)(CI)(F)
BUILTIN\Administrators:(I)(OI)(CI)(F)
BUILTIN\Users:(I)(OI)(CI)(RX)
Everyone:(I)(OI)(CI)(RX)

C:\ProgramData\Microsoft\network\Connections NT AUTHORITY\SYSTEM:(F)
NT AUTHORITY\SYSTEM:(OI)(CI)(IO)(F)

BUILTIN\Administrators:(F)
BUILTIN\Administrators:(OI)(CI)(IO)
(F)
Everyone:(RX)
Everyone:(OI)(CI)(IO)(GR,GE)
No mapping between account names an
d security IDs was done.
(RX,W)
No mapping between account names an
d security IDs was done.
(OI)(CI)(IO)(GR,GW,GE)
No mapping between account names an
d security IDs was done.
(F)
No mapping between account names an
d security IDs was done.
(OI)(CI)(IO)(F)

C:\ProgramData\Microsoft\network\Downloader NT AUTHORITY\SYSTEM:(OI)(CI)(F)
Nikhil-PC\Admin:(OI)(CI)(F)
Nikhil-PC\Nikhil:(OI)(CI)(F)

C:\ProgramData\Microsoft\network\Downloader\*: The system cannot find the path s
pecified.
Successfully processed 3 files; Failed processing 1 files

C:\Windows\system32>
 

My Computer

Computer type
PC/Desktop
Computer Manufacturer/Model Number
Custom build
OS
Windows 7 Home Premium 64 bit
CPU
Intel i5-4670K
Motherboard
Gigabyte Z87X-UD4H
Memory
Crucial Ballistix 16GB (PC3-12800)
Graphics Card(s)
EVGA NVIDIA GeForce GTX 750
Sound Card
ASUS Xonar DGX PCI-E GX2.5
Monitor(s) Displays
Dell U2311H
Screen Resolution
1920 x 1080
Hard Drives
Crucial M500 240GB SSD ( Primary),
WD Blue 500 GB,
WD Caviar Black 1 TB
PSU
Corsair HX750
Cooling
ZALMAN CNPS9500 (CPU) , Three cooling case fans.
Antivirus
Microsoft Security Essentials
Browser
Firefox, Chrome
Hmm - if even ICACLS is failing to read the files, then you have a serious problem...

Click on Start > All Programs > Accessories
Right-click on the Command Prompt entry
Select Run as Administrator and accept the UAC prompt - the Elevated Command Prompt window should pop up.
At the Command prompt, type
CHKDSK C: /R
and hit the Enter key.
You will be told that the drive is locked, and the CHKDSK will run at the next boot - hit the Y key, and then reboot.
The CHKDSK will take a few hours depending on the size of the drive, so be patient!
After the CHKDSK has run, Windows should boot normally (possibly after a second auto-reboot) - then run the ICACLS commands again and we'll see if anything has changed.
 

My Computer

Computer type
Laptop
Computer Manufacturer/Model Number
Asus K52F or Lenovo B51-80
OS
Win 7 x64 Home Premium (and x86 VirtualBox VM)/Win10
CPU
i3 370M/i7 6500U
Motherboard
Asus/Lenovo
Memory
8GB - finally :)/8GB
Graphics Card(s)
it's an i3, dude!/dual Intel&nVidia
Sound Card
onboard
Monitor(s) Displays
15.6" built-in
Screen Resolution
1366x768/1920x1080
Hard Drives
750GB Seagate internal
Sundry external drives attached to other computers on the local network
1TB SSD on the Lenovo
PSU
n/a
Internet Speed
as much as I can get - usually on a dongle/phone, so <1MB/s
Antivirus
MSE/Defender
Browser
IE11/12/Edge/Chrome/FF(if I must)
Ran the CHKDSK, here are the results of the ICACLS command

Microsoft Windows [Version 6.1.7601]
Copyright (c) 2009 Microsoft Corporation. All rights reserved.

C:\Windows\system32>ICACLS %allusersprofile%\Microsoft\network /T
C:\ProgramData\Microsoft\network NT AUTHORITY\SYSTEM:(I)(OI)(CI)(F)
BUILTIN\Administrators:(I)(OI)(CI)(F)
BUILTIN\Users:(I)(OI)(CI)(RX)
Everyone:(I)(OI)(CI)(RX)

C:\ProgramData\Microsoft\network\Connections NT AUTHORITY\SYSTEM:(F)
NT AUTHORITY\SYSTEM:(OI)(CI)(IO)(F)

BUILTIN\Administrators:(F)
BUILTIN\Administrators:(OI)(CI)(IO)
(F)
Everyone:(RX)
Everyone:(OI)(CI)(IO)(GR,GE)
No mapping between account names an
d security IDs was done.
(RX,W)
No mapping between account names an
d security IDs was done.
(OI)(CI)(IO)(GR,GW,GE)
No mapping between account names an
d security IDs was done.
(F)
No mapping between account names an
d security IDs was done.
(OI)(CI)(IO)(F)

C:\ProgramData\Microsoft\network\Downloader NT AUTHORITY\SYSTEM:(OI)(CI)(F)
Nikhil-PC\Admin:(OI)(CI)(F)
Nikhil-PC\Nikhil:(OI)(CI)(F)

Successfully processed 3 files; Failed processing 0 files

C:\Windows\system32>



One thing that I noticed is after running the CHKDSK , the Downloader directory under C:\ProgramData\Microsoft\network folder has been turned into a file with a size of 0 KB.
 

My Computer

Computer type
PC/Desktop
Computer Manufacturer/Model Number
Custom build
OS
Windows 7 Home Premium 64 bit
CPU
Intel i5-4670K
Motherboard
Gigabyte Z87X-UD4H
Memory
Crucial Ballistix 16GB (PC3-12800)
Graphics Card(s)
EVGA NVIDIA GeForce GTX 750
Sound Card
ASUS Xonar DGX PCI-E GX2.5
Monitor(s) Displays
Dell U2311H
Screen Resolution
1920 x 1080
Hard Drives
Crucial M500 240GB SSD ( Primary),
WD Blue 500 GB,
WD Caviar Black 1 TB
PSU
Corsair HX750
Cooling
ZALMAN CNPS9500 (CPU) , Three cooling case fans.
Antivirus
Microsoft Security Essentials
Browser
Firefox, Chrome
AH - so that's what happened!

OK - Open an Elevated Command Prompt, and run the following commands...

DEL C:\Programdata\Microsoft\Windows\Network\Downloader
MD C:\Programdata\Microsoft\Windows\Network\Downloader

ICACLS C:\Programdata\Microsoft\Windows\Network\Downloader
DIR C:\Programdata\Microsoft\Windows\Network\Downloader

post the results and reboot.

then run the last two commands again and post the new results.
 

My Computer

Computer type
Laptop
Computer Manufacturer/Model Number
Asus K52F or Lenovo B51-80
OS
Win 7 x64 Home Premium (and x86 VirtualBox VM)/Win10
CPU
i3 370M/i7 6500U
Motherboard
Asus/Lenovo
Memory
8GB - finally :)/8GB
Graphics Card(s)
it's an i3, dude!/dual Intel&nVidia
Sound Card
onboard
Monitor(s) Displays
15.6" built-in
Screen Resolution
1366x768/1920x1080
Hard Drives
750GB Seagate internal
Sundry external drives attached to other computers on the local network
1TB SSD on the Lenovo
PSU
n/a
Internet Speed
as much as I can get - usually on a dongle/phone, so <1MB/s
Antivirus
MSE/Defender
Browser
IE11/12/Edge/Chrome/FF(if I must)
Noel, ran the suggested commands and here's the output

Microsoft Windows [Version 6.1.7601]
Copyright (c) 2009 Microsoft Corporation. All rights reserved.

C:\Windows\system32>DEL C:\Programdata\Microsoft\Windows\Network\Downloader
The system cannot find the file specified.

C:\Windows\system32>DEL C:\Programdata\Microsoft\Windows\Network\Downloade*
The system cannot find the file specified.

C:\Windows\system32>DEL C:\Programdata\Microsoft\Windows\Network\Downloader
The system cannot find the file specified.

C:\Windows\system32>help del
Deletes one or more files.

DEL [/P] [/F] [/S] [/Q] [/A[[:]attributes]] names
ERASE [/P] [/F] [/S] [/Q] [/A[[:]attributes]] names

names Specifies a list of one or more files or directories.
Wildcards may be used to delete multiple files. If a
directory is specified, all files within the directory
will be deleted.

/P Prompts for confirmation before deleting each file.
/F Force deleting of read-only files.
/S Delete specified files from all subdirectories.
/Q Quiet mode, do not ask if ok to delete on global wildcard
/A Selects files to delete based on attributes
attributes R Read-only files S System files
H Hidden files A Files ready for archiving
I Not content indexed Files L Reparse Points
- Prefix meaning not

If Command Extensions are enabled DEL and ERASE change as follows:

The display semantics of the /S switch are reversed in that it shows
you only the files that are deleted, not the ones it could not find.

C:\Windows\system32>del C:\ProgramData\Microsoft\Network\Downloader

C:\Windows\system32>help md
Creates a directory.

MKDIR [drive:]path
MD [drive:]path

If Command Extensions are enabled MKDIR changes as follows:

MKDIR creates any intermediate directories in the path, if needed.
For example, assume \a does not exist then:

mkdir \a\b\c\d

is the same as:

mkdir \a
chdir \a
mkdir b
chdir b
mkdir c
chdir c
mkdir d

which is what you would have to type if extensions were disabled.

C:\Windows\system32>MD C:\ProgramData\Microsoft\Network\Downloader

C:\Windows\system32>ICACLS C:\ProgramData\Microsoft\Network\Downloader
C:\ProgramData\Microsoft\Network\Downloader NT AUTHORITY\SYSTEM:(I)(OI)(CI)(F)
BUILTIN\Administrators:(I)(OI)(CI)(F
)
BUILTIN\Users:(I)(OI)(CI)(RX)
Everyone:(I)(OI)(CI)(RX)

Successfully processed 1 files; Failed processing 0 files

C:\Windows\system32>DIR C:\ProgramData\Microsoft\Network\Downloader
Volume in drive C has no label.
Volume Serial Number is 3A21-58EF

Directory of C:\ProgramData\Microsoft\Network\Downloader

09/19/2015 12:25 PM <DIR> .
09/19/2015 12:25 PM <DIR> ..
0 File(s) 0 bytes
2 Dir(s) 164,211,982,336 bytes free

C:\Windows\system32>
 

My Computer

Computer type
PC/Desktop
Computer Manufacturer/Model Number
Custom build
OS
Windows 7 Home Premium 64 bit
CPU
Intel i5-4670K
Motherboard
Gigabyte Z87X-UD4H
Memory
Crucial Ballistix 16GB (PC3-12800)
Graphics Card(s)
EVGA NVIDIA GeForce GTX 750
Sound Card
ASUS Xonar DGX PCI-E GX2.5
Monitor(s) Displays
Dell U2311H
Screen Resolution
1920 x 1080
Hard Drives
Crucial M500 240GB SSD ( Primary),
WD Blue 500 GB,
WD Caviar Black 1 TB
PSU
Corsair HX750
Cooling
ZALMAN CNPS9500 (CPU) , Three cooling case fans.
Antivirus
Microsoft Security Essentials
Browser
Firefox, Chrome
Noel, finally after executing the commands you suggested I am able to access C:\ProgramData\Microsoft\Network\Downloader folder. I also tried starting BITS service and now it starts without any errors ( first time since end of May). I am not going to try anymore steps. I'll wait for your instructions. Thanks a lot for your help.
 

My Computer

Computer type
PC/Desktop
Computer Manufacturer/Model Number
Custom build
OS
Windows 7 Home Premium 64 bit
CPU
Intel i5-4670K
Motherboard
Gigabyte Z87X-UD4H
Memory
Crucial Ballistix 16GB (PC3-12800)
Graphics Card(s)
EVGA NVIDIA GeForce GTX 750
Sound Card
ASUS Xonar DGX PCI-E GX2.5
Monitor(s) Displays
Dell U2311H
Screen Resolution
1920 x 1080
Hard Drives
Crucial M500 240GB SSD ( Primary),
WD Blue 500 GB,
WD Caviar Black 1 TB
PSU
Corsair HX750
Cooling
ZALMAN CNPS9500 (CPU) , Three cooling case fans.
Antivirus
Microsoft Security Essentials
Browser
Firefox, Chrome
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