I uninstalled all updates and restarted the system. So I had to use my restore point to solve this problem.
I must have spent 30 hours trying various fixes without success!
auth=1 "Resetting the entire Windows Update Component manually" I did this using the command prompt as outlined in the article.
I used file "Windows6.0-KB947821-v35-x86.msu" and the resulting "Check SUR.log" file said there were no remaining unfixed errors. Reran the Fix It tool and it still detects error code 0X80070057 None of these bright ideas worked. However, when I attempted to install it stated update not for my system.
Before attempted fixes 13 updates were detected and I selected 11 to install ... https://support.microsoft.com/en-us/kb/947821 "Fix Windows Update errors by using the DISM or System Update Readiness Tool" This is listed as the fix for error code 0X80070057. Although my system is 64 bits the listed requirements did not specify 32 bits.
This created a new Windows\Catroot2 folder and a new Windows\System32\Software Distribution folder ... auth=1 Installed the latest version of the Windows Update Agent. After applying this patch, check the updates manually.