This all started last night on my tower! This morning I fired up my laptop which I am now typing on. The same exact thing happens on it!
I have been "manually" checking for updates for quite awhile, I do the usual, hit control panel, System and Security then check for updates. Both important and optional show which when checked loads normal updates and optional MSE updates.
MSE will still up date but only manually on both machines, I am willing to bet this was caused by an MS update and is not a system issue. I believe this will be showing up on other machines.