Unfortunately, that didn't not work either. BITS is still not listed as a service either. I was sent this as a conversation from a third party, but I did not want to try it until you gave the okay.
I had same issue with this Sirefef reboot things, I also couldn't update neither Win nor MSE...
It actually comes from a service from which "windows Update" service depend on : BITS service!
You need to re-register but doing the following by copying and pasting the following in cmd:
sc create BITS binpath= "c:\windows\system32\svchost.exe -k netsvcs" start= delayed-auto
You then either have to reboot your pc or go into Services (run: services.msc) and start the service BITS.
==> source : http://answers.microsoft.com/en-us/...bits-not/c69ba6ad-bf60-4e53-9b7b-f97e9436e529