Forwarded from a member:

After installing ArcGIS 9.3 on several Win 7 computers I noticed that Windows Update was not working. It would go to the Update site and sit on downloading updates forever and never make any progress. Further investigation in the Event Viewer and Services Management showed an error Error 1450: Insufficient system resources exist to complete the requested service. I was able to find two posts on the web addressing this issue and suggesting a fix. The basic fix is to do the following:

1) Run Regedit as an Administrator and set the Registry Size Limit to “unlimited”:
Key: RegistrySizeLimit
Value: 0xffffff (4294967295) – You need to set the value to decimal and copy and paste the number value here into the registry value

2) Reboot

3) As a Administrator open a Command Prompt and run “SFC /SCANNOW”. The command should complete successfully and if any errors were found, they should be corrected.

This has fixed the problem on all our machines so far. Do be very careful when editing your registry. You can really muck things up beyond repair if you do not know what you are doing. Here are links to the Articles I found with the solution from above.