There are several reasons why the installation or finalization of one or more Windows updates can hang. I am not going in detail what issues can be.
Solution by Microsoft are following: But none work for me so I have found this tweak. Open Command Prompt and type following
Try deleting the “pending.xml” file at this location, reboot, hopefully that configuring message will not run.
C:Windowswinsxspending.xml
Following Solutions are by Microsoft, It may works . Credit to Microsoft
Method 1.
If your computer is having problems finding and installing operating system updates, try using the Windows Update troubleshooter to fix the problem. It makes sure that your computer is connected to the Internet, and checks to see whether your network adapter and Windows Update services are running correctly.
Refer to the article below for steps and additional information.
Open the Windows Update troubleshooter
http://windows.microsoft.com/en-US/windows7/Open-the-Windows-Update-troubleshooter
Method 2.
Also you may refer to the article below for some more methods.
Troubleshoot problems with installing updates
http://windows.microsoft.com/en-us/windows7/Troubleshoot-problems-with-installing-updates
Method 3.
http://support.microsoft.com/kb/971058