Normally the update (Automatic) or "Let me choose") would not be offered,t.
This is a new install, had it working properly on my old PC 2 days ago, but I have dled SP1 and checked for more updates but there's none.
A google search suggested that I needed to install KB979306, so I dled it but it won't install.
My copy is a OEM genuine, and I had to dl WGA to obtain a activation code, so I did so and was allowed to dl KB9xxxx, but as I said, it won't install.
Not sure if KB9xxxxx is the fix, but when I set my timezone back an hr, it set my time back by 1hr, and the programs followed it, rather than stay put.