Problem
Initially when shutting down a Windows XP SP3 machine it would freeze on “Saving Settings…” or on “Windows is Shutting Down…”. I didn’t know it was an issue with corrupt updates trying to install until I ran uphclean.exe. A Microsoft utility, User Profile Hive Cleanup
After installing this and running the cleaner from C:\program files\uphclean\uphclean.exe and attempting to shutdown via start > shutdown the machine appeared to hang with the message “Installing Updates 1 of 13″.
Fix
1. Attempt to stop the Windows Update service
net stop wuauserv
If this fails boot to safe mode and follow the rest of the steps
2. Purge the Windows Update cache
cd /d %windir%
rd /s SoftwareDistribution
3. Shutdown successfully. Next reboot you can re download the failed updates.