Windows Update-Prompt to Restart computer

I'm trying to troubleshoot a laptop that seems to have a Windows Update issue.

I power the computer on, and see a message "Restart your computer to finish installing important updates."
I click on restart, log in and wait for the applications to load. And after a few minutes into loading startup applications, etc. The message pops up again?

I've uninstalled a few 10/27/10 updates to see if it was a corrupt update that affected it--but that did not work. There is another 10/27 kb976902 update I cannot seem to remove but some of the forums say it's for the soon to be release of SP1.

Has anyone encountered this?

Okay, i will give that a try now and let you know how I make out.
Thanks for quickly replying by the way.

That didn't work, I got two error messages:
"System Restore did not complete successfully. Your computer's system files and settings were not changed. Details: The data is invalid. (0x8007000D). You can try System Restore again and choose a different restore point..."
Clicked on Run system Restore button -> There was an unexpected error: Catastrophic failure (0x8000FFFF)
Please close System Restore and try again.

VFTech said:

That didn't work, I got two error messages:
"System Restore did not complete successfully. Your computer's system files and settings were not changed. Details: The data is invalid. (0x8007000D). You can try System Restore again and choose a different restore point..."
Clicked on Run system Restore button -> There was an unexpected error: Catastrophic failure (0x8000FFFF)
Please close System Restore and try again.

1.Enable in Control panel>>Folder Options "Show hidden files and folders" or better use any good 3p file manager e.g Total Commander (there are many good file managers)

NOTE:

To these folders only administrators have access,the best way run file manager with elevated previlliges (right click on file manager and choose "run as admin"

2.Go to folder C:\ProgramData\Microsoft\Crypto\RSA\S-1-5-18 and delete all files which name start with string d42

example from my computer:



As you can see in my example file circled with red line potentially may cause problem

next restart computer

VFTech said:

There is another 10/27 kb976902 update I cannot seem to remove but some of the forums say it's for the soon to be release of SP1.

Has anyone encountered this?

This update has been called the "blackhole" update by some. It may have been released prematurely by Microsoft in anticipation of releasing the final version of Windows 7 SP1 at some time in the future (not to be confused with the beta and RC versions of SP1 now available.)

Demystifying KB976902, a.k.a. Microsoft’s “Blackhole” Update — Krebs on Security

This is the official Microsoft response to KB 976902. Of particular note:

Update removal information
You cannot remove this update.

Description of the Windows 7 and Windows Server 2008 R2 installation software feature update

The SFC scan came back with no integrity violations. I will try Flavius' method today and let you know on Monday.

I only had one file that started with d42... and deleted it. Restarted the computer and started up System Restore and unfortunately received the same message.."System Restore did not complete successfully...."

Should I uninstall a few more microsoft updates?

VFTech said:

I
Should I uninstall a few more microsoft updates?

No.

Go to Start>>Search>>services.msc and make sure Volume Shadow Copy service is set to MANUAL,if not then correct it.

Check also advices from there "Catastrophic Failure" while creating Restore Point,especially check @daniel_g post (post 9).If nothing help boot Win 7 install disk and from it's level restore system.