Microsoft needs to test updates !
If you have automatic updates set up at all your workstations there is no way to avoid installtion of SP1 after it has downloaded. I had 6 PCS affected with that fatal C00000034 error on the 9th and at the time Microsoft was NOT even aware of the issue. Thank GOD I found a fix that day here:
I was able to bring stations back up without losing anything.What I didnt know was that the restore points I had set up were erased because of this update. Ironically the remaining windows 7 stations installed with no issues but appear to have slowed down performance the next day.
Businesses CANNOT AFFORD to be down and Microsoft needs to make sure they test thier updates thoroughly. We would need a crystal ball to tell us when we shoud turn on or disable WSUS.