Are you back to IE6 or running IE7 beta ?
Provide details on the "freeze" at windows update. Is it at the welcome or initial screens? does it complete the scan & then show choices for selection? is it at the download phase? or install phase?
Also, have you looked into the contents of your update log?
Go back to Windows Update, but then select View update history. (When you first get to website for Microsoft Update-Windows Update, look at left-hand column, under Options. Press "Review your update history".)
If this is on V6 of Windows Update, you should be able to click on that error note, and see some info.
Use Wordpad and open & look at the Windows Update log file
C:\WINNT\WindowsUpdate.log
(note your Windows folder may be at \Windows)
Scroll down all the way. You are looking for entries marked "Error" such as 0x......... (where ...... are numbers)
See KB 902093 How to read the Windowsupdate.log file
http://support.microsoft.com/kb/902093