The updates were from Microsoft and if you look at the two bottom entries on the Event Log they show a corruption.
2/23/2010 6:10:00 PM, Error: Ntfs  - The file system structure on the disk is corrupt and unusable. Please run the chkdsk utility on the volume \Device\HarddiskVolume1.
2/23/2010 6:05:25 PM, Error: Ntfs  - The file system structure on the disk is corrupt and unusable. Please run the chkdsk utility on the volume C:.
The updates failed due to this.
We are going to run chkdsk which will verify and repair the file system
Step One: Click Start
, select Run
Step Two: In the box, type cmd
Step Three: Click Ok
Step Four: Run the chkdsk utility by typing in the following command:
chkdsk c: /f /r
NOTE: The /f command automatically fixes any errors encountered, the /r command locates bad sectors and recovers readable information.
Step Five: A reboot is normally required for the chkdsk program to lock the disk and run correctly (this is typical on machines that have only one volume), so simply restart the computer and chkdsk will run automatically. When it's finished, (This process can take quite a while depending on the size of your disk, etc.), it will boot back to normal Windows.
On Rebooting the PC you will see the disk being checked.
This process will take, on average, about an hour.
Let me know how the PC behaves after this has been run.