Question : Windows update fails, tried all tricks

I have deleted all cookies, temp files and ran the following batch files as recommended by other sites, and deleting the software distribution folder. This is a pdc and there is no group policy defintions defined as I can do updates on all other dcs and member servers fine. Has avg network version but that is no issue since it has no firewall module or service running. I also delted the windowsupdate registry key as advised and remerged the same key from a member server that works, its attached. Hoping for some luck on this. The windows update page errors with this Error number: 0x8024D007

batch file 1
REGSVR32 WUPS2.DLL /S
REGSVR32 WUPS.DLL /S
REGSVR32 WUAUENG.DLL /S
REGSVR32 WUAPI.DLL /S
REGSVR32 MUCLTUI.DLL /S
REGSVR32 WUCLTUI.DLL /S
REGSVR32 WUWEB.DLL /S
REGSVR32 MUWEB.DLL /S
REGSVR32 QMGR.DLL /S
REGSVR32 QMGRPRXY.DLL /S
batch file 2
net stop wuauserv
cd %systemroot%\SoftwareDistribution
ren softwareDownload softwareDownload.old
net start wuauserv
net stop bits
net start bits
net stop cryptsvc
cd %systemroot%\system32
ren catroot2 catroot2old
net start cryptsvc

Last part of update log
2010-01-04      16:07:30:333      1712      10c4      Misc      Registering binary: C:\WINDOWS\system32\regsvr32.exe  /s "C:\WINDOWS\system32\wuaueng.dll"
2010-01-04      16:07:30:942      4352      1104      Misc      ===========  Logging initialized (build: 7.4.7600.226, tz: -0800)  ===========
2010-01-04      16:07:30:942      4352      1104      Misc        = Process: C:\WINDOWS\system32\regsvr32.exe
2010-01-04      16:07:30:942      4352      1104      Misc        = Module: C:\WINDOWS\system32\wuaueng.dll
2010-01-04      16:07:30:942      4352      1104      Service      FATAL: WU client fail to create WU service with error 0x80070005
2010-01-04      16:07:31:052      1712      10c4      Misc      FATAL: Self registration of C:\WINDOWS\system32\wuaueng.dll failed, error = 0x8024D007
2010-01-04      16:07:31:052      1712      10c4      Setup      WARNING: Completed registration operations for section wuaueng_WebSetup: status 0x8024d007
2010-01-04      16:07:31:052      1712      10c4      Setup      WARNING: Setup failed while processing registry operations, error = 0x8024D007. Rolling back changes.
2010-01-04      16:07:31:052      1712      10c4      Setup      Rollback: Successfully copied C:\WINDOWS\system32\cdm.dll.wusetup.14681984.bak back to C:\WINDOWS\system32\cdm.dll
2010-01-04      16:07:31:052      1712      10c4      Setup      Rollback: Successfully copied C:\WINDOWS\system32\wuauclt.exe.wusetup.14682375.bak back to C:\WINDOWS\system32\wuauclt.exe
2010-01-04      16:07:31:067      1712      10c4      Setup      Rollback: Successfully copied C:\WINDOWS\system32\wuaucpl.cpl.wusetup.14682484.bak back to C:\WINDOWS\system32\wuaucpl.cpl
2010-01-04      16:07:31:067      1712      10c4      Setup      Rollback: Successfully copied C:\WINDOWS\system32\wuaucpl.cpl.mui.wusetup.14682484.bak back to C:\WINDOWS\system32\wuaucpl.cpl.mui
2010-01-04      16:07:31:067      1712      10c4      Setup      Rollback: Successfully copied C:\WINDOWS\system32\wuaueng.dll.wusetup.14682656.bak back to C:\WINDOWS\system32\wuaueng.dll
2010-01-04      16:07:31:067      1712      10c4      Setup      Rollback: Successfully copied C:\WINDOWS\system32\wuaueng.dll.mui.wusetup.14682671.bak back to C:\WINDOWS\system32\wuaueng.dll.mui
2010-01-04      16:07:31:067      1712      10c4      Setup      Rollback: Successfully copied C:\WINDOWS\system32\wucltui.dll.wusetup.14682781.bak back to C:\WINDOWS\system32\wucltui.dll
2010-01-04      16:07:31:083      1712      10c4      Setup      Rollback: Successfully copied C:\WINDOWS\INF\wuau.adm.wusetup.14682812.bak back to C:\WINDOWS\INF\wuau.adm
2010-01-04      16:07:31:083      1712      10c4      Setup      Rollback: Successfully copied C:\WINDOWS\system32\wucltui.dll.mui.wusetup.14682828.bak back to C:\WINDOWS\system32\wucltui.dll.mui
2010-01-04      16:07:31:083      1712      10c4      Setup      Rollback: Successfully copied C:\WINDOWS\HELP\wuauhelp.chm.wusetup.14682843.bak back to C:\WINDOWS\HELP\wuauhelp.chm
2010-01-04      16:07:31:130       844      1110      Misc      ===========  Logging initialized (build: 7.2.6001.788, tz: -0800)  ===========
2010-01-04      16:07:31:130       844      1110      Misc        = Process: C:\WINDOWS\System32\svchost.exe
2010-01-04      16:07:31:130       844      1110      Misc        = Module: C:\WINDOWS\system32\wuaueng.dll
2010-01-04      16:07:31:130       844      1110      Service      *************
2010-01-04      16:07:31:130       844      1110      Service      ** START **  Service: Service startup
2010-01-04      16:07:31:130       844      1110      Service      *********
2010-01-04      16:07:31:145       844      1110      Agent        * WU client version 7.2.6001.788
2010-01-04      16:07:31:145       844      1110      Agent        * Base directory: C:\WINDOWS\SoftwareDistribution
2010-01-04      16:07:31:145       844      1110      Agent        * Access type: No proxy
2010-01-04      16:07:31:145       844      1110      Agent        * Network state: Connected
2010-01-04      16:07:34:083      1712      10c4      Setup        * WARNING: Exit code = 0x8024D007
2010-01-04      16:07:34:083      1712      10c4      Setup      *********
2010-01-04      16:07:34:083      1712      10c4      Setup      **  END  **  Setup: Installing client binaries
2010-01-04      16:07:34:083      1712      10c4      Setup      *************
2010-01-04      16:07:34:083      1712      10c4      Setup      FATAL: InstallUpdatedBinaries failed with error 0x8024d007
2010-01-04      16:07:34:083      1712      10c4      WUWeb      FATAL: InstallUpdatedBinaries failed with error:0x8024d007
2010-01-04      16:07:34:083      1712      10c4      WUWeb      FATAL: UpdateClientWorker failed: error 0x8024d007

Answer : Windows update fails, tried all tricks

Note that automatic update will install latest msiexe installer file first without your explicit persmission but in manual you have to update it first. That is why manual will fail in such case. Anyway the unexplainable is always there.