I had that issue where Win 7 did an update and the update blew up on the install. The system then would not start properly. I went into the Windows update files and looked at the installed patches and discovered that a whole series of patches failed to install after the failed one. You can force the system to go back to the last known good point, but this does not fix the failed patch install. It does allow MS Office to update, and others to Update but not the O/S. I went through all the error codes on the failed patches and attempted all the patch repairs that were suggested, and these fixed nothing. I finally backed up all the Data Files to portable drive and then reimaged with a known good image to replace the corrupted O/S. I then told it to do all the updates which it did. The update issue was fixed. I also told it update all the software which it did and I restored the data files.
I realize that this was a very time consuming operation and it is something that I should have done from the start, but I did attempt the Microsoft corrections which did not work. I even involved Microsoft Tech Support on this. This will not work if you do not have a valid image, and you do if you do not have the valid license keys for all the software for the machine.