Software Update stuck: "Moving files into place"

Software Update stuck. In OS C Lion (10.7.4) I ran Software Update on 25-Jul-2012 (The day when OS X Mountain Lion was released). Software Update had 5 updates, such as Safari 6.0, Remote Desktop, iPhoto (?). Software update gets about 95% done, based on the progress bar. Then it hangs... for hours. I finally had to force-Quit Software Update. Rebooted. Tried again. Same problem. Rebooted and rest the PRAM (command-option-P-R) at start-up. Ran Software Update and had the same problem. Software Update hangs while "Moving files into place." Has anyone else seen this problem and know how to get it to work?

I discovered that if I selected only one update at a time to install, all but one installed (i.e., Remote Desktop, Safari 6, and iWork update). The one update that did not install was the iPhoto update. I had left the install to run overnight (about 7 hours). Console log for /var/log/install.log when installing iPhoto update follows:
Jul 25 21:39:25 mymac installd[2768]: PackageKit: Extracting file://localhost/Library/Updates/041-5716/iPhoto9.3.2Update.pkg (destination=/var/folders/zz/zyxvpxvq6csfxvn_n0000000000000/Cleanup At Startup/PKInstallSandbox-tmp/Root, uid=0)
Jul 25 21:40:09 mymac installd[2768]: PackageKit: Extracting file://localhost/Library/Updates/041-5716/iPhoto9.3.2ContentUpdate.pkg (destination=/var/folders/zz/zyxvpxvq6csfxvn_n0000000000000/Cleanup At Startup/PKInstallSandbox-tmp/Root, uid=0)
Jul 25 21:40:15 mymac installd[2768]: PackageKit: Executing script "preinstall" in /private/tmp/PKInstallSandbox.cAwBIw/Scripts/com.apple.pkg.iPhoto9.3.2Update.fK Mu0v
Jul 25 21:40:16 mymac _spotlight[4876]: Running Install Scripts . . .
Jul 25 21:40:16 mymac _spotlight[4878]: Begin script: AlertAll.sh
Jul 25 21:40:17 mymac installd[2768]: preinstall: 2012-07-25 21:40:17.123 AlertAll[4880:707] Looking for applications at
Jul 25 21:40:17 mymac installd[2768]: preinstall: 2012-07-25 21:40:17.178 AlertAll[4880:707] --(null)
Jul 25 21:40:17 mymac installd[2768]: preinstall: 2012-07-25 21:40:17.188 AlertAll[4880:707] img:1
Jul 25 21:40:17 mymac installd[2768]: preinstall: 2012-07-25 21:40:17.196 AlertAll[4880:707] >> timerMethod
Jul 25 21:40:17 mymac installd[2768]: preinstall: 2012-07-25 21:40:17.197 AlertAll[4880:707] >> updateTable
Jul 25 21:40:18 mymac installd[2768]: preinstall: 2012-07-25 21:40:18.354 AlertAll[4880:707] >> applicationShouldTerminate
Jul 25 21:40:19 mymac installd[2768]: preinstall: 2012-07-25 21:40:19.385 AlertAll[4880:707] >> applicationWillTerminate
Jul 25 21:40:19 mymac _spotlight[4888]: End script: AlertAll.sh
Jul 25 21:40:19 mymac _spotlight[4889]: Begin script: deleteObsolete
Jul 25 21:40:19 mymac _spotlight[4893]: End script: deleteObsolete
Jul 25 21:40:19 mymac _spotlight[4894]: 2 Install Scripts run.
Jul 25 21:40:19 mymac installd[2768]: PackageKit: Shoving /var/folders/zz/zyxvpxvq6csfxvn_n0000000000000/Cleanup At Startup/PKInstallSandbox-tmp/Root (2 items) to /

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Software Update stuck: "Moving files into place"

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