How to fix the configuring failure of recent windows updates

Windows updates are necessary and should be installed when they're available in most cases, but apparently this time something has obviously gone wrong.
After installing the latest released updates (installed week of August 19th 2012) I noticed that my computer would say "Configuring Windows Updates" when shutting down every time I shut down and when I turn the computer back on it would say "Configuring Windows Updates" then "Failed to Configure Update, Reverting blah blah blah" now this can be very frustrating, so how do you fix this?

This is a bit time consuming, but it works (another method is welcomed):

1. Go to Windows Update in the control panel (OR in Windows 7 go to Start - All Programs and it should be towards the top of the list on the left side) 
2. You can now click on "Check for updates" (the option is in the top left corner of the window) although this may not be necessary since it would have already found the updates hence the problem
3. Click on the "important updates are available" option
4. Clear all the selected updates (they would have check marks in the little box on the left side)
5. Now click/select any one (1) of the available updates and click on OK (bottom right corner)
6. Click on "Install Updates" and allow it to do its thing (you may have to restart your computer when that update is finish installing)
7. Repeat the steps until all the available important update have been installed.

NB: The problem does not appear to originate from the optional updates so I would recommend installing them as you normally would.

I sincerely hope that this would not be a trend to future Windows Update and would update this post in the coming weeks accordingly.

UPDATE: Special thanks to Sten Phillip for identifying the specific update and commenting below - KB2647753