Currently, a couple of users are facing issues with Microsoft December 2014 patch day. Windows throw an error 800706F7 and refuse to update. The issue has been observed in Windows 7 clients and on Windows Server 2008 R2 as well (and probably on Exchange). A few hints, what to do.
The main cause for update error 800706F7 is Update KB3004394 (just withdrawn from Microsoft’s Windows Update – and also from direct download links). I’ve blogged about this yesterday in my article Update KB3004394 breaks Root Certificate in Windows 7/ Windows Server 2008 R2.
So the fix is really simple: Removal of Update KB3004394 should resolve the problem, that is occuring on Windows 7 client, and even on Windows Server 2008 R2 or Exchange Server (see this Technet thread – or this spiceworks.com thread).