Looking at that manifest error, if that is the only cause, it should be very easy to fix. Let us check that out though, before you become too excited!
Download on another computer, copy to a memory stick, and run on the problem computer this tool: Description of the System Update Readiness Tool for Windows Vista, for Windows Server 2008, for Windows 7, and for Windows Server 2008 R2
Make sure that you download the correct version for the problematic computer.
Run the tool. Split step:
1) If the tool runs, copy back to the memory stick C:\Windows\Logs\CBS\CheckSUR.persist.log
2) If the tool does not run, check for the above log anyway, and copy to memory stick if you can. If not, copy C:\Windows\Winsxs\Manifests\x86_microsoft.windows.c..-controls.resources_6595b64144ccf1df_6.0.6001.18000_en-us_72e6f33f34dfabb9.manifest to your memory stick.
Back on the working computer, highlight together, right click on > Send to > Compressed (zipped) folder, and upload that here.
Thanks, and the very best of luck!