Ok I was having this problem after fresh installs on multiple computers with Windows 7 Enterprise and Pro.
After a week of trying everything I could think of I called Microsoft. Level 1 support was unable to help me. But they did schedule a phone call with level 2 support. I was informed they would get back to me the next day between 6am and Midnight. Gee thanks.
They did call about 5pm and were able to fix the problem in about 20 minutes.
Step 1 - Download KB3135445 (Newest BITS components)
Step 2 - Go to services and turn BITS, Cryptrographic and WindowsUpdate to always restart... all three options... Always on.
Step 3 - Run the batch files from the following link .... (Microsoft downloaded all of them to me) Bunch of registry cleanup and such
https://app.box.com/s/d9s7kzfqvfbnzq1z3ivk9yj1tyhzkodl
Step 4 - They ran windows update. It checked for updates for about 10 minutes and voila...
*****I am guessing WSUSOffline updater can replace step 4 but Microsoft had control of the computer and figured I would let them do their thing.
Life is Good!