See if any of these help>
Windows Update - Error
1/ If you cannot update XP check your c:\windows\windows update.log. If you have this error: Error 0x800C0008 then go to Tools\internet options\languages. You must have one language selected. Boom windows update works again!
Or for LAN settings
2/ Go to control panel, open up Internet Options\Connections. Click on the Lan Settings button at the bottom right of the window. Untick Automatically detect settings.
By waddy
3/ I have had alot of emails regarding Windows Update, when you download the updates, the installation of the updates seems to hang or die. AOL users seem to have this problem more than others.
There is a way to fix this.
Double-click My Computer.
# On the Tools menu, press Folder Options.
# Select the View tab.
# Clear the Hide protected operating system flies (Recommended) box.
# Check the Show Hidden files and folders box.
# Press Apply and OK.
# Expand the C: drive.
# Expand the WUTemp folder.
# Press CTRL+A to select all the files and sub-folders in WUTemp.
# Press the Delete key and Yes when prompted to confirm the deletion.
# Expand the C: drive.
# Expand Program Files.
# Right-click the WindowsUpdate folder and Rename it OldWindowsUpdate.
# Restart your computer and delete the OldWindowsUpdate folder.
# Use Internet Explorer to visit
http://www.windowsupdate.com.
It also is a good idea to delete you cookies and Temp files first. Only use this method if you have problems with Windows Update and do so at your own risk.