RCguitarist :
I have never seen windows update have 360 controller updates. I used the disc driver and mine has performed flawlessly on my 2 pcs for years. As Vynavill said, make sure you get rid of all the motionjoy drivers. Also, once the 360 controller is on, try pushing the middle Xbox button on the controller. This might activate it for the first time.
The hell? This is weird, but funny...
The only time I had to install drivers manually was on a old WinXP from a friend... Had 2 PCs with W7 myself, or W8 from others, and they always proposed me with a driver download from Windows update servers... No need to press a thing, although I recall the 4 lights flashing without any sign of stopping. Usually, just unplugging and re-plugging the joypad fixed the issue.
Meh, it's Microsoft anyway, what did you expect?