The recently released KB3004394, an update for Win 7 and Server 2008 Root Certificate Program has been causing havoc with many machines and could also be what is causing the installation errors some users have had with the AMD Catalyst Omega driver.  It is not just the new AMD driver, NVIDIA users have also seen installation issues after accepting this update and that is only the tip of the iceberg.  Reports of issues with VirtualBox, Microsoft Security Essentials, Windows Update itself and many other programs and system files are being negatively effected by this update.  If you have it on your system Microsoft recommends you manually remove it to prevent issues with your machine now and in the long term using Programs and Features –> Installed Updates.

For those who can still access Windows update you should see KB3024777, which will remove the problematic update automatically or you can download it directly from Microsoft here.

"We have found that this update is causing additional problem on computers that are running Windows 7 Service Pack 1 (SP1) and Windows Server 2008 R2 SP1. This includes the inability to install future updates."

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