Cannot update any drivers, 80070005 error

Folks

I am having problems updating ANY of my drivers on Windows 7 x64 bit edition. I can install software no probs, but no drivers. The issue cropped up when my printer didn't seem to work so I tried to refresh the drivers. I also tried to update my Nvidia driver, at which point I had to do a system restore as I could only uninstall the driver but not resinstall. Note the system restore did not work either initially (it complained that a file was locked, disabling the firewall and antiviru didn't help). I could only get the restore working by doing it in safe mode (interestingly, it said it was unsuccesful also, but when I logged back into Windows it had actually worked...??) Suspect the system restore issue is related...

I have tried the following which worked for some people according to the forums, but not for me:

1. Being logged in as administrator (well, my userid has admin rights apparently).
2. Disabling the firewall and antivirus (Avast) and retrying Windows Update, incl. windows update troubleshooting option (note I turned all the shields off in Avast, I take it that means it is shut down completely....)
3. Scanning my PC with various antiviral/malware detectors (2 were from the Microsoft website)
4. Toggling the System32 folder from not-hidden to hidden back to not-hidden in Explorer
5. Cleaning the registry with CCLeaner and Tune Up

Tonight I am going to try the Repair Option with the Windows 7 startup DVD (if I can find it) and perhaps also doing driver update in Safe MOde? (That doesn't solve the root cause though in my mind). The IT department at work have also suggested creating a new userid with admin rights...

Obviously been reading some people advise rebuilding the OS from DVD is the way to fix it, which is not what I want to be doing ideally as otherwise the PC appears to be stable.

Any insight appreciated
Cheers
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More about update drivers 80070005 error
  1. Just as I was preparing to reinstall windows I seem to have discovered a workaround finally. I had to reboot windows in "CLean Boot Mode" by adjusting settings in msconfig, then the drivers and also problematic windows updates seemed to install OK.
    Something must've been clashing with the update process.....
    Yet to try a driver update with windows in normal boot mode now, but at least i found a workaround.
    More info by following the "Clean Boot Mode" link in 1 of the responses below:

    http://social.technet.microsoft.com/Forums/windows/en-US/6371a8f8-f2d9-4540-a6cd-18fdfacd6d9c/failure-configuring-windows-updates-reverting-changes?forum=w7itproperf
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