Window update won't run, service is running, other issues

Lenovo T500 8GB, approximately 4 years old OEM Win 7 Pro (upgrade from original VISTA, purchased in the transitional window). It was running slow, so I did as much cleanup as I could but it didn't help much. In particular, I wanted to eliminate remnants of an hijack from a couple of years ago by conduit.com, sweetpacks, and keybar 32. I deleted a number of folders in the user/appdata area that had obvious references, then (maybe foolishly) cleaned out the same references from the registry, and finally used ccleaner to cleanup the registry.

I used Windows backup and restore to transfer an image to a larger and faster hard drive. The transfer appeared to go well and speed improved significantly, but now there are two obvious problems.

1) Outlook emails won't display graphics. Email displayed in browser shows what it should. I tried many so called solutions and none of that helped. A recent update loaded IE10 and I think that might be the culprit. This is not the subject of the post, but I don't know if it is related or not.
2) More importantly, but not nearly as annoying at the Outlook problem is that Windows Update is not functioning. Again, reading here and there, I tried a number of things without success. I followed the instructions here for Windows Update Posting.

a) When I try to run Windows Update, see attached GIF. The service is running and it tells me to start the service. I see this posted elsewhere so I know I'm not the only one.

b) SURT will not run. I have no results to show.

c) sfc /scannow was run, log attached. I don't understand why I can't open the log.

d) The CBS.zip is attached.

I'd like to make this work. If it is more work than its worth, I still have the original hard drive and it appears to be working fine, though I didn't test it after I allowed the IE10 update to install.

Thanks for looking.

Phil

Opps, the zip file didn't load.
Error codes that I am seeing:
Windows Update error 0x80070057
On trying to load SURT 0xc8000247
I also ran the reset tool I found here with no obvious result.

Awesome fix, so simple, yet someone in the know needs to show the way. I am very grateful for your time on this and for posting the correct solution. This is a great forum. I should have come here first.

Katussoft: Noel's diagnosis about the Intel Rapid Storage drivers was 100% correct. Loading them cleared up the problem. WU was/is set to automatic delayed start. As noted in the OP, this is a seemingly oddball problem. The service is running, but the error message says it is not running. I think we've grown accustomed to this sort of nonsense from MS. I appreciated your input, as the command line query is much simpler and quicker than going to the services window. Also, it established very quickly that what I reported was accurate.

I should also mention that SP2 for MS Office loaded as soon as WU was fixed. That resolved the problem with seeing red x's in my emails where pictures where supposed to show. Let's call this a two-fer. I'm really happy that I can move on and things are back to normal.

Actually, the new normal is better. I swapped a 250GB 5400RPM HD for a 750GB 7200RPM HD. Boot time seems to be about 50-60% of what it was (and I was watching the second hand on the clock; from about 2 minutes to just over 1 minute) and programs are loading and running noticeably faster.

I first tried a scratch build on the new drive, but that worked out poorly. First, I got the dreaded Windows is not genuine message, and then realized I would have to re-activate every software product I had loaded. It would have taken days to plow through all that needed doing. The only drawback - maybe - is that restoring an image cloned the primary drive partition size, leaving me with almost 500GB of HD that was unallocated. I created a second partition and called it D:. I'm actually thinking this might prove to be advantageous. I tried a number of ways to consolidate the partitions without success. I think it might have something to do with the Lenovo factory partitions of Q: and S: being somehow in the way. I suppose I could buy Partition Magic, but I wasn't looking to spend any more time or money on this.