Can't install Update, access denied: "WindowsUpdate_00000005"

Ill be sure to inform you once I have a solution. I have a deadline in the next few days I will contact them after that and update this topic, seriously, thanks for all the help, i'm sorry it hasn't worked out yet =(

Thank you Drewseph.
I am sorry we could not have helped more.

Well, it looks like even tech support couldn't fix the problem. They said I have a Virus, and should reinstall windows. Not sure how since I have antivirus software and do not visit corrupt sites or download unknown programs... I guess I'll give it a try....

I have spyware doctor with antivirus. I also run malwarebytes to check occasionally for malware that SWD might not find. in any case I think I solved the problem....

When backing up files for my re install I got to a folder which could not be deleted, access denied blah blah blah. (different error number)

So I did a search on how to delete un-deletable files and found LockHunter

This program has to select the file that won't delete and it tells you the process that won't give access....

It turns out that a program called "TrustedInstaller.exe" was blocking it. I Next I did a check on my CBS folder, again, blocked by the same program.... so I did a search on how to delete files blocked by it. I went to my C drive, security, advanced and changed the owner to from Trusted Installer, to me.....

after applying the changes I got a few access denieds, but I ran my SP1 installer, and instead of geting access denied right away, it began to install.... I'm halfway through but the bar seems to have stopped.... how long does it take to install SP1?

*EDIT MY bar went up to almost 75% complete, then back to half way?

It was just a folder which I was trying to delete, it had no system significance.

Well, I have SP1 installed. Removing ownership from Trusted Installer solved everything, no more access denied...

It looks to me like it isn't so trusted anymore.... is there a way to repair/re install it in case it is corrupted?

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

C:\Users\3D-Drew>ICACLS C:\Windows\logs\CBS\CBS.log
C:\Windows\logs\CBS\CBS.log BUILTIN\AdministratorsR,W,D,WDAC,WO)
NT AUTHORITY\SYSTEMR,W,D,WDAC,WO)
NT AUTHORITY\LOCAL SERVICER,W,D)
3D-Drew-PC\3D-DrewR,W,D,WDAC,WO)

Successfully processed 1 files; Failed processing 0 files

C:\Users\3D-Drew>dir C:\Windows\logs\CBS
Volume in drive C has no label.
Volume Serial Number is C282-BAF9

Directory of C:\Windows\logs\CBS

04/18/2012 12:58 PM <DIR> .
04/18/2012 12:58 PM <DIR> ..
04/18/2012 12:57 PM 0 CBS.log
04/02/2012 04:17 AM 714,479 CbsPersist_20120402092428.cab
04/11/2012 09:27 PM 537,111 CbsPersist_20120412052321.cab
04/17/2012 03:31 PM 984,546 CbsPersist_20120417203202.cab
04/18/2012 11:54 AM 486,080 CbsPersist_20120418165938.cab
04/18/2012 12:52 PM 2,186,099 CbsPersist_20120418175751.cab
02/27/2012 07:00 PM 148 FilterList.log
7 File(s) 4,908,463 bytes
2 Dir(s) 130,756,759,552 bytes free

C:\Users\3D-Drew>