titanblitz,
Please rerun the mgadiag utility and this time on the Windows tab, click the "Resolve" button. It will run a script that can sometimes clear up the cryptographic problems that your system is experiencing.
Go ahead and restart the computer and navigate to this site http://www.microsoft.com/genuine/default.mspx?displaylang=en and click Validate Windows, let it run, and restart.
You can try to update the windows updates again at this point. If you are still not able to please post any additional
error messages you are getting when updating for Windows updates.
!
Lori MS