BITS Error 2: The System cannot find the file specified

This may be simple, or it may be very complex - are you ready for what could be a long thread?
If not, then a repair install is the way to go.

A little history on your problem would help us decide how complex this is likely to get.
Have you had malware problems recently?
How long-standing is your problem?
What other symptoms apart from not being able to update are you seeing?

In elevated command prompt

Code:

 
cd /d   "C:\Users\All Users\Application Data\microsoft\Network"
attrib  *.*

post output

go through the list of services and make sure all of the following are set to Automatic or Manual:
Remote Procedure Call (RPC), System Event Notification, Windows Management Instrumentation Driver Extensions, COM+ Event System, DCOM Server Process Launcher

Try to start these services (of not started yet). All start fine?

Start REGEDIT and browse to HKEY_LOCAL_MACHINE\SYSTEM\CurrentControlSet\Services\BITS\Parameters
What do you see on the right side of screen?

3DPiper said:

Have you had malware problems recently?

I check for malware frequently, using both Malwarebytes and superantispyware.. I haven't specifically noticed any problem until now.

How long-standing is your problem?

I'm not really sure, I just recently realized I wasn't updating and that led me to find out this problem..
I think the last successful update was a month ago

What other symptoms apart from not being able to update are you seeing?

Again, I am only noticing things now that I am looking for them.. One problem is I can't open a cmd prompt
as administrator (everything in the compatibility tab is greyed out)..

In elevated command prompt

Code:
cd /d "C:\Users\All Users\Application Data\microsoft\Network"attrib *.*
post output

I cannot start an elevated command prompt, my whole compatibility tab is greyed out..


go through the list of services and make sure all of the following are set to Automatic or Manual:
Remote Procedure Call (RPC), System Event Notification, Windows Management Instrumentation Driver Extensions, COM+ Event System, DCOM Server Process Launcher

Try to start these services (of not started yet). All start fine?

RPC is started and is currently set to Automatic
System Even Notification is currently started and set to Automatic
Windows Management Instrumentation is currrently started and set to Automatic
COM+ Event System is currently started and set to Automatic
DCOM Server Process Launcher is currently started and set to Automatic


Start REGEDIT and browse to HKEY_LOCAL_MACHINE\SYSTEM\CurrentControlSet\Services\BITS\Parameters
What do you see on the right side of screen?

My BITS registry doesn't look like yours (see pic)..

Import mine... see attachment

Malware, is the usual answer - often in the form of a supposed Registry Cleaner.

3DPiper said:

Yay! That worked! Thank you SO much!! :)

I wonder how my registry got screwy in the first place..?

THANK YOU!!

finally problem has been solved. But You can't run elevated CMD prompt as well (and maybe more problems). Spyware, VIRUS??!

Ain't no such animal.

The only thing that can prevent infection is your own habits - you MUST learn to evaluate every click you make in terms of risk, or you WILL get infected/infested again, no matter what software protecton you use.