I finished checking your log.
It shows 2 .Net 4 client updates and one .Net 4 security update are failing,as Drew points out. The updates are downloaded, so it does not seem to be that part of the process.
What it also shows is about 14 updates whose install condition cannot be determined. Of those 14, I can only find one I can tie one to a KB number and that is KB2511455, which is a Security update for Windows 7.
WARNING: Failed to evaluate Installable rule, updateId = {0BA9478A-8BD9-4A2A-AF16-7C5AE44769BB}.103, hr = 8007066F
You did get a .Net 3.5.1 update and several others regarding security for IE9 and Security for Windows 7 and Silverlight, etc., so it looks like that part of your updates are working.
I am going to surmise the unknown condition of previous updates might be causing the problems. Not sure about .Net 4, unless it is the same situation.
So, I suppose my suggestion is going to be turn off ALL of Norton (about 8 items) and try the installs and do a complete shutdown after.
If the problem isn't being caused by Norton blocking access to some database, then my next guess would be the database itself is corrupted.
Have you done anything to try to repair the updates so far as renaming or deleting any folders? Did you ever get the Update Readiness Tool to run?
Edit: It also appears a couple of the unidentified updates belong to Microsoft Office. But do not know that for sure.