Windows 7 Windows update Service Pack 1 KB976932 not installing

Maybe it's because you upgraded instead of doing a clean install. Upgrades frequently have some problems.
Joe
 
If it helps any, I just ran the command on both of my systems. No problems encountered, see attachment.

Do you have the ability to make an image backup?
 

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Since you asked, I researched how to flush the BITS queue using Windows PowerShell. When you list your jobs, you should show 8, 5 of which are the problem and 3 that cannot download because of the first 5.

The commands given will completely flush the queue and hopefully allow for the other jobs to be restarted and completed. I was thinking, if you are considering restoring your system back to its basic install, it won't hurt to try something that might keep you from having to do that.

Go to the Start Menu, All Programs, Accessories, Windows PowerShell and run as admin.

With Window open, type the following commands. You can see the result in the attachment, except for the jobs descriptions. Note, I looked for jobs after doing this and showed none.

import-module bitstransfer
get-bitstransfer
get-bitstransfer | remove-bitstransfer
get-bitstransfer
exit

Last get command just checks for any leftover jobs.

Anyway good luck with your system, whatever you decide to do...
 

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