I have spent many hours on this issue over the past week. Today I invested a couple of hours running the AIO Repair pgm. I found most menu items ran (that I selected) with the exception of 02 (reset file permissions). 01, 03, 04, 07 14, and 16 seemed to run without a hitch. 17 (Repair Windows Update) showed a couple of errors ("Trusted Installer.exe not found", and "proxycfg.exe not recognized", both current user and system). 26(Restore Important Windows Services) produced a plethora of errors, but they all said the same: "not a valid reparse point".
BTW: I ran ComboFix to scan for viruses and it found none.
I gave up and went back to chasing Microsoft Troubleshooters. With no resolution, looks like I am stuck in the mud. No Windows Update and IE9. When I try to install IE10 or 11, it wants to download required updates, but when I attempt to install them manually, they all report either not applicable to this PC or already installed. IE9 setup reports not installed completely, but it seems to run OK. I just can't uninstall it or update it.
I may very well install a distro of Linux. My patience with Windows is about run out, and I have been using Microsoft OS versions since DOS 1.0. Windows 7 performed flawlessly for several years until just a week or so ago. Even with all the issues with Microsoft in the past, I was always able to resolve them eventually. This bugger has me stumped.