windows update agent 7.2.6001.784 error

i cant install this update for the updater, every time it tries i get error "0x800703E7". i am on a custom built system i built on monday. i have OEM vista 32-bit premium and its activated and genuine. i cant find anything about this error anywhere. ive tried using the windows update in the control panel and the manual download from microsoft.com, even manually i get the same error. i also cant install the redistributable 3.1 it gives a "not enough storage" error which makes no sense when i have 45GB free on my HDD. one more thing, i cant use games for windows live either. im guessing because i dont have the latest vista updates and cant get them until the latest updater is installed and the 3.1 thing. i really really need some help on how to get these installed because i dont think i can get any updates if i dont have the latest updater. so if anyone has any info/help as to how to get this resolved its greatly greatly appreciated. this is my first build and it runs fine except for the update thing. so please help if you can.