Windows Update is failing on update KB2770917. Very annoying due to the fact that this update requires a reboot. Here is what is happening exactly:

1. Indicate KB2770917 update is available
2. Download update
3. Begin install process
4. Ask for reboot
5. (manual reboot)
6. Fail installing update at 15%
7. Reboot machine
8. Fail installing update
9. Give up and revert changes
10. Reboot machine
11. Repeat 1 - 10

Here is the XML data from the Event Viewer:

  
  20
  1
  2
  1
  13
  0x8000000000000028
  
  6257
  
  
  System
  Meesh_Desktop
  
  
- 
  0x80071a90
  Update for Windows 8 for x64-based Systems (KB2770917)
  {3C0B7982-7F60-4224-9631-D5EF4508F2AD}
  200
  {7971F918-A847-4430-9279-4A52D1EFE18D}



**UPDATE**
I have some information from my C:\Windows\WindowsUpdate.log file that might be helpful (assuming anyone from Microsoft is reading this!):

149c    Agent      * Found 1 updates and 77 categories in search; evaluated appl. rules of 1147 out of 2091 deployed entities
149c    Agent    *********
149c    Agent    **  END  **  Agent: Finding updates [CallerId = AutomaticUpdates]
149c    Agent    *************
149c    Agent    *************
149c    Agent    ** START **  Agen

Was having the same problem with KB2770917. Just found a solution that worked.
Hit windows key + R to open Run command.
Type in msconfig.exe and hit enter
go to the Services tab on the top
Check the box on the bottom that says hide all microsoft services Click Disable all
Restart the computer
Install update

After installation follow the same instructions but click enable all instead of disable all and restart again and everything should be good. Hopefully it works for others.