Suggestion 1: Re-register the relevant system files
==========================================
1. Click Start, Run, type: notepad C:\register.bat and press Enter. Choose
Yes when you are prompted.
2. Copy the following commands and then paste them into the opened Notepad
window:

net stop wuauserv
ren %windir%\SoftwareDistribution sold.old
regsvr32 wuapi.dll /s
regsvr32 wups.dll /s
regsvr32 wups2.dll /s
regsvr32 wuaueng.dll /s
regsvr32 wucltui.dll /s
regsvr32 wuweb.dll /s
regsvr32 muweb.dll /s
regsvr32 msi.dll /s
regsvr32 msxml.dll /s
regsvr32 msxml2.dll /s
regsvr32 msxml3.dll /s
net start wuauserv

3. After you paste the above commands, please close the Notepad window.
Choose Yes when you are prompted to save the file.
4. Click Start, Run, type: C:\register.bat and press Enter to run the
commands we have pasted.

Suggestion 2: Reinstall the Windows Installer 3.1 in the Safe Mode
===========================================
Please download the Windows Installer 3.1 from the following download link:

Windows Installer 3.1
http://www.microsoft.com/downloads/details.aspx?FamilyID=889482fc-5f56-4a38-b838-de776fd4138c&DisplayLang=en

2.      Restart the computer.
3.      Keep pressing the F8 key until the Windows Startup menu appears.
4.      Choose Safe Mode, and press Enter.?
5.      Reinstall the update in this mode.
6.      If the installation procedure can be completed, please restart the
machine to the Normal Mode to check if the system still hung by the high
usage of svchost.exe.

Suggestion 3: Disable the Microsoft Update feature and use Windows Update
================================================
Microsoft Update feature requires more system resource since it will scan
all the local Microsoft Products' components to determine if any
corresponding updates are available. For the troubleshooting purpose, I
also recommend we temporarily disable the Microsoft Update feature to test
the issue. To do so, please refer to the following KB article:

How to enable and to disable Microsoft Update
http://support.microsoft.com/?id=901037

SETUP Perf MPS Report