Windows 7 64 bit Home SP1 installation fails with ERROR_NOT_FOUND message

Windows 7 SP2 installation failed many times on my laptop.

[HRESULT = 0x80070490 - ERROR_NOT_FOUND]

1. I ran "System Update Readiness Tool"
2. I got a list of KBxxxxx *.mum file missing in the C:\Windows\Logs\CBS\CBS.log
3. I got "Element not found".

How do I recover?

The exact patch is "KB976932 Windows 7 Service Pack 1 for x64"

This a log line from cbs.log:

C:\Windows\Servicing\Packages\Package_for_KB974455~31bf3856ad364e35~amd64~~6.1.1‌​.0.mum [HRESULT = 0x80070002 - ERROR_FILE_NOT_FOUND]

How many files are listed as "missing" in CBS.log? If they are limited to a limited number (10 or 20). You may try to manually reinstall them, otherwise I suspect you got some unuexpected failure in the windows update, but I need some other info like Windows Event Viewer.

In any case this is the "MANUAL" procedure.

1. Manually download any of KBxxxx update from Microsoft site (example: Windows6.1-KB974455-x64.msu) (do not confuse Windows6.1-KBxxxxx-x64 with Windows6.1-KBxxxxx-x86 !!!)

2. Manually extract msu files into local directory: It will generate at laest one xml file and 1 .cab files

3. Manually extract files from .CAB (cabinet files): you will find the files as named in the CBS.log

That's all, just recover files from such temporary location

Example with KB978207

mkdir d:\tmp2
mkdir d:\tmp2\files
cd /d d:\tmp2
D:\Download\Windows6.1-KB978207-x64.msu /extract:D:\tmp2
Dir *.cab
expand -F:* D:\tmp2\Windows6.1-KB978207-x64.cab D:\tmp2\files
cd /d D:\tmp2\files
dir *.mum
dir *.cat

Now, recover files:

copy *.mum C:\Windows\servicing\Packages
copy *.cat C:\Windows\servicing\Packages

Repeat for all KBxxxx file missing like your KB974455. Disable antivirus software if any.