Windows update breaks after installing update agent 7.6.7600.320

Hi all, really hoping for some help.

I have been trying to set up my older (2008) laptop with a clean install of windows 7 ultimate / 32 bit.
The reason to do this is because I was given a SSD drive and wanted to set up a 100% fresh system.
This laptop was before running just fine on the same windows version, but from a HDD.

My problem is this: I run a new setup for windows, no problems. I run windows update and it starts with updating to a new update agent Version 7.6.7600.256. No problems, I receive some updates including SP1. After installing SP1 I get the mandatory update to update to Update Agent 7.6.7600.320 and windows update just breaks. When I start it just searches for updates forever but never finds any.(after hours)

Now, my PC is running the same windows version and updates just fine. Also, I have tried to do clean installs on several systems and they ALL have the exact same problem. I even did installs on all these systems with different W7 versions (Home and PRO) and still the exact same problem, as soon as Update Agent 7.6.7600.320 gets installed it all grinds to a halt.

I have tried all kinds of solutions I found on the internet including a repair tool from tweaking.com (Tweaking.com - Windows Repair Free/Pro) which combines most solutions suggested like disk and file system checks. I also changed DNS settings to the Google DNS and of course tried the MS Fix it tool and also ran CCCleaner. I have tried so many things I don't even remember them all.

So because the installation on my laptop HDD was running fine before I made an image of that disk and imaged it onto the SSD...but still the same problem. If I now run W7 from my old HDD it also doesn't work anymore. It all seems so unlogical because my PC is on the same internet connection and has no problems which suggests it's not a router issue. It is also not a WIFI issue because if I use the cable from my pc in the laptop it still does not update.

Hoping for some guidance for which I thank you in advance!

Edit: included my update log if that helps. Note: in this case I did a clean setup but never connected to the internet. I had downloaded the standalone SP1 and the latest update agent and all installed them offline hoping it would change something. Result is exactly the same as when I just did these updates via Windows Update.