Windows Update and MSE will not update

The Windows Update and MSE on my wife's netbook will not run. I've tried making sure the BITS and WU are running in the Services. BITS is running but Update won't run. When I try to get it to run I get an error 1067. When I try to run update I get the Update
in not running message. When I try to update MSE I get an error 0x80080005.
Diagnostic Report (1.9.0027.0):
Windows Validation Data-->
Validation Code: 0
Cached Online Validation Code: N/A, hr = 0xc004f012
Windows Product Key: *****-*****-FJT32-QMPGB-GCFF6
Windows Product Key Hash: KGSsbuo1+06XJlvCBpYnFCqWv54=
Windows Product ID: 00342-OEM-8992752-30004
Windows Product ID Type: 2
Windows License Type: OEM SLP
Windows OS version: 6.1.7601.2.00010300.1.0.011
ID: {76BA4188-6989-4312-891C-65EFCE4499D4}(1)
Is Admin: Yes
TestCab: 0x0
LegitcheckControl ActiveX: N/A, hr = 0x80070002
Signed By: N/A, hr = 0x80070002
Product Name: Windows 7 Starter
Architecture: 0x00000000
Build lab: 7601.win7sp1_gdr.140303-2144
TTS Error: 
Validation Diagnostic: 
Resolution Status: N/A
Vista WgaER Data-->
ThreatID(s): N/A, hr = 0x80070002
Version: N/A, hr = 0x80070002
Windows XP Notifications Data-->
Cached Result: N/A, hr = 0x80070002
File Exists: No
Version: N/A, hr = 0x80070002
WgaTray.exe Signed By: N/A, hr = 0x80070002
WgaLogon.dll Signed By: N/A, hr = 0x80070002
OGA Notifications Data-->
Cached Result: N/A, hr = 0x80070002
Version: N/A, hr = 0x80070002
OGAExec.exe Signed By: N/A, hr = 0x80070002
OGAAddin.dll Signed By: N/A, hr = 0x80070002
OGA Data-->
Office Status: 100 Genuine
Microsoft Office Enterprise 2007 - 100 Genuine
OGA Version: N/A, 0x80070002
Signed By: N/A, hr = 0x80070002
Office Diagnostics: 025D1FF3-364-80041010_025D1FF3-229-80041010_025D1FF3-230-1_025D1FF3-517-80040154_025D1FF3-237-80040154_025D1FF3-238-2_025D1FF3-244-80070002_025D1FF3-258-3_E2AD56EA-765-d003_E2AD56EA-766-0_E2AD56EA-134-80004005_E2AD56EA-765-b01a_E2AD56EA-766-0_E2AD56EA-148-80004005_16E0B333-89-80004005_B4D0AA8B-1029-80004005
Browser Data-->
Proxy settings: N/A
User Agent: Mozilla/4.0 (compatible; MSIE 8.0; Win32)
Default Browser: C:\Program Files\Google\Chrome\Application\chrome.exe
Download signed ActiveX controls: Prompt
Download unsigned ActiveX controls: Disabled
Run ActiveX controls and plug-ins: Allowed
Initialize and script ActiveX controls not marked as safe: Disabled
Allow scripting of Internet Explorer Webbrowser control: Disabled
Active scripting: Allowed
Script ActiveX controls marked as safe for scripting: Allowed
File Scan Data-->
File Mismatch: C:\Windows\system32\wat\watadminsvc.exe[Hr = 0x80070003]
File Mismatch: C:\Windows\system32\wat\npwatweb.dll[Hr = 0x80070003]
File Mismatch: C:\Windows\system32\wat\watux.exe[Hr = 0x80070003]
File Mismatch: C:\Windows\system32\wat\watweb.dll[Hr = 0x80070003]
Other data-->
Office Details: <GenuineResults><MachineData><UGUID>{76BA4188-6989-4312-891C-65EFCE4499D4}</UGUID><Version>1.9.0027.0</Version><OS>6.1.7601.2.00010300.1.0.011</OS><Architecture>x32</Architecture><PKey>*****-*****-*****-*****-GCFF6</PKey><PID>00342-OEM-8992752-30004</PID><PIDType>2</PIDType><SID>S-1-5-21-2535747627-2150558150-2755165369</SID><SYSTEM><Manufacturer>Acer</Manufacturer><Model>AOD257</Model></SYSTEM><BIOS><Manufacturer>INSYDE</Manufacturer><Version>V1.14</Version><SMBIOSVersion
major="2" minor="6"/><Date>20110922000000.000000+000</Date></BIOS><HWID>B8970100018400E4</HWID><UserLCID>0409</UserLCID><SystemLCID>0409</SystemLCID><TimeZone>Eastern Standard
Time(GMT-05:00)</TimeZone><iJoin>0</iJoin><SBID><stat>3</stat><msppid></msppid><name></name><model></model></SBID><OEM><OEMID>ACRSYS</OEMID><OEMTableID>ACRPRDCT</OEMTableID></OEM><GANotification/></MachineData><Software><Office><Result>100</Result><Products><Product
GUID="{90120000-0030-0000-0000-0000000FF1CE}"><LegitResult>100</LegitResult><Name>Microsoft Office Enterprise 2007</Name><Ver>12</Ver><Val>7480B9502DF0D86</Val><Hash>oYWOW5ayFE3pZ+jvTpuXYsY64JE=</Hash><Pid>89388-707-8722531-65301</Pid><PidType>14</PidType></Product></Products><Applications><App
Id="15" Version="12" Result="100"/><App Id="16" Version="12" Result="100"/><App Id="18" Version="12" Result="100"/><App Id="19" Version="12"
Result="100"/><App Id="1A" Version="12" Result="100"/><App Id="1B" Version="12" Result="100"/><App Id="44" Version="12" Result="100"/><App
Id="A1" Version="12" Result="100"/><App Id="BA" Version="12" Result="100"/></Applications></Office></Software></GenuineResults>  
Spsys.log Content: 0x80070002
Licensing Data-->
Software licensing service version: 6.1.7601.17514
Name: Windows(R) 7, Starter edition
Description: Windows Operating System - Windows(R) 7, OEM_SLP channel
Activation ID: 8be4a481-9b5c-4588-a5ec-5dad4b1f15da
Application ID: 55c92734-d682-4d71-983e-d6ec3f16059f
Extended PID: 00342-00178-927-530004-02-1033-7601.0000-2202011
Installation ID: 017622677721141361630283562192842876556872428761495962
Processor Certificate URL: http://go.microsoft.com/fwlink/?LinkID=88338
Machine Certificate URL: http://go.microsoft.com/fwlink/?LinkID=88339
Use License URL: http://go.microsoft.com/fwlink/?LinkID=88341
Product Key Certificate URL: http://go.microsoft.com/fwlink/?LinkID=88340
Partial Product Key: GCFF6
License Status: Licensed
Remaining Windows rearm count: 2
Trusted time: 7/3/2014 5:24:05 PM
Windows Activation Technologies-->
HrOffline: 0x00000000
HrOnline: N/A
HealthStatus: 0x0000000000000000
Event Time Stamp: N/A
ActiveX: Not Registered - 0x80040154
Admin Service: Not Registered - 0x80040154
HealthStatus Bitmask Output:
HWID Data-->
HWID Hash Current: LgAAAAAAAQABAAIAAAABAAAAAwABAAEAnJ+cKQYqGLB8r/QoxPLejAzc4NhcMw==
OEM Activation 1.0 Data-->
N/A
OEM Activation 2.0 Data-->
BIOS valid for OA 2.0: yes
Windows marker version: 0x20001
OEMID and OEMTableID Consistent: yes
BIOS Information: 
  ACPI Table Name OEMID Value
OEMTableID Value
  APIC ACRSYS
ACRPRDCT
  FACP ACRSYS
ACRPRDCT
  HPET ACRSYS
ACRPRDCT
  BOOT ACRSYS
ACRPRDCT
  MCFG ACRSYS
ACRPRDCT
  WDAT INSYDE
INSYDE  
  SLIC ACRSYS
ACRPRDCT
  SSDT ACRSYS
ACRPRDCT
  SSDT ACRSYS
ACRPRDCT
  SSDT ACRSYS
ACRPRDCT
If someone could help me with this asap, the wife is anxious to be able to use her computer again

Hi,
Regarding Windows Update issue, please have a share with your CBS.log ( Find the log in C:\Windows\Logs\CBS\CBS.log ) and
Windowsupdate.log, and we could find the windowsupdate.log in (%windir%\Windowsupdate.log).
For Windows update troubleshooting, we might first take a look at the following articles:
Troubleshooting update issues for Microsoft Security Essentials
Troubleshoot problems with installing updates
Fix Microsoft Windows Update Issues 
Best regards
Michael Shao
TechNet Community Support

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