To delete the folder "Software Distribution" do the following:
1. Browse start menu to programs>accessories
2. Right click on command prompt and run as administrator
3. Type "net stop wuauserv" (don't close out the command prompt just minimize it)
4. Browse to the windows folder and delete or rename the software distribution folder
5. Now back in the command prompt type "net start wuauserv"
Open windows update and check for updates. Should fix the problem.