I hit the same problem with Google Earth right now.. thankfully - disabling SQM did the trick.
Too many people are experiencing this issue right now, all at the same time, here, on other
forums (39 posts in 18 hours) and on the
newsgroup (63 posts in 1 day).
I'm pretty sure MS screwed up some files that customer experience service downloads from the internet causing MSI/WU to break for all users: that could explain why system restore didn't work, it kept breaking. Nobody seemed to have experienced this problem
before, all those dozens of posts about the issue only in the last 2 day . Anybody knows other win7 users to ask if they started having the same issue?