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.