Jim Roseberry
If you install Win7 (at this point in time)... and go to check for updates, it can literally take ~12 hours for Windows updates to appear. This was not the case in the past, and I'm guessing it's not complete happen-stance.
MS is trying to influence folks to move to Win10.
Installing the hotfixes manually will allow you to work around the issue.
The update process functions normal after doing so...
Once Win7 is fully up-to-date, make sure to create a backup image file (prior to installing any software or additional hardware). This will allow you to quickly reinstall a clean Win7 (including all updates).
I just dealt with the same problem on a clean install of Windows 8.1. The first 850 megs or so of updates went smoothly. Then it would just be "Checking for Updates" forever. I eventually got it to work by manually installing one of the updates and then running the "Windows Update Troubleshooter" but it took a while to figure out. It showed 206 updates were required at 1.2GB! After that, now everything is working smoothly.
There's a lot of advice online on how to handle this problem so be careful.
My advice would be:
1) After the clean install, let Windows have a few hours to install drivers, etc without doing any updates.
2) After that, manually run Windows Update over and over until you get to the point where it searches for updates indefinitely (they say an hour online)
3) At that point, search for the "Windows Update troubleshooter" online for your Windows version and run that. Note that this is a later and better version than the troubleshooter that comes with Windows. It will probably find and fix errors. Don't get too excited yet because that might not fix the issue. Try rebooting and running Windows Update again.
4) If that doesn't work, search the Windows forums. There are one or two KB updates that address issues with Windows Update but it varies by Windows version. Install those (you may have to manually kill the Windows Update service to do so. Go into the "Local Services" management tool in Windows, right click "Windows Update" service and select "Stop"). Otherwise the updates will "Search for Installed Updates" indefinitely. (If you get stuck in this, go to task manager and kill "wupi.exe"). For me it only took one update being manually installed, and I'm not 100% sure that it even was what made the difference. Reboot after installing.
5) After step 4, try steps 2 and 3 again. That's what ended up working for me. Eventually I ran the troubleshooter and it went from "Searching for Updates" to showing me 206 available updates. It was a glorious moment.
One other note, I wouldn't recommend manually making any changes to the Windows Update folder in C:\Windows\SoftwareDistribution. The Troubleshooting tool will do that for you.
I didn't make a backup image file, although I should have. I like to live on the wild side :)