Kudos to MS, 'for a change' Lol, via Microsoft Technical Support (Answer Desk)! The MS level 3 tech got me going today after 3 hrs of troubleshooting. He was very courtious, understandable and helpful (and he didn't even recommend wearing a pot as a hat Lol).
For future refference, after installing a fresh Windows 7 x64 OS from disc, if Windows update will not find available updates, then download/install the following updates manually in order:
(1) Windows Update Agent (select download from the list in the following link applicable to your Windows 7 x64 OS)
https://support.microsoft.com/en-us/kb/949104(2) Windows Update Client for Windows 7 and Windows Server 2008 R2: February 2016 (KB3135445)
(3) Security Update for Windows 7 for x64-based Systems (KB3145739)
(4) Update for Windows 7 for x64-based Systems (KB3138612)
(5) Update for Windows 7 for x64-based Systems (KB3102810)
*If WU problem still exist then download/install:
(6) System Update Readiness Tool for Windows 7 for x64-based Systems (KB947821) [October 2014]
My Windows Update setting are: 'Install Updates Automatically (recommended)', 'Give me recommended updates the same way I recieve important updates' and 'Allow all users to install updates on this computer'.
When WU finds available updates there will likley be many, 284 important - 7 optional in my case. The MS tech recommended installing only a few at a time (~15-20 depending on file type/size) starting from the bottom of the list via checking only those corresponding boxes in the list. Since this machine now has the SSD drive which is very fast at start-up/restart, it was very time saving for me since I restarted after each group of downloaded/installed updates. I recommend disabling 'password required at login' and turning off 'Guest account' to speed up the time required for all the restarts involved. Remember to reactivate these functions , if desired, after completing the update process.
Thanks again to the MS tech's and you guys here on the CH forum!