I agree with the folks that suggest reinstalling the operating system, For some reason, Vista needs this at least once, to properly load. I've done mine 4 times, by direction of both HP and Microsoft, The 4rth time was a charm, despite the usual pun. Only problems is I don't know the model of laptop, so I can't tell you exactly how to do this. However trying the updates with a clean boot is the first order of things to do. Some folks have already giving you advice on this but I'll add one extra step - when configuring MSCONFIG be sure to go to the services tab and check the box that says [hide all Microsoft services], then you can go to the start up tab and click [disable all] before rebooting.
A clean boot will negate any security software you have running - AdWatch will be disabled but if the tray icon bothers you - you can end it by right clicking it in the systray and selecting Disable AdWatch Live!
***NOTE: AdAware now comes with active antivirus, you cannot run two anti-virus at the same time, you will have to disable the virus part of AdWatch every time you update it, but for me it is worth it! ***
I'm not sure about Online Armor, but this clean boot has worked for some of my clients using Vista 32 bit with OnLine Armor.
***NOTE: Online Armor is not recommended for Vista x64 so if you have that you need to go to another product. ***
I have had many problems getting things to work while Windows Defender is activated, but you would think a Windows product would not block a Windows Update; but I always disable the real time protection of Windows Defender and plain just not use it - you already have superior products running.
If this does not work and you are not running a pirated copy of Win/Vista, you can get free help from the folks at Microsoft on anything pertaining to updates, even if you have an Original Equipment Manufactured (OEM) computer. I seriously recommend this if someone has not already suggested it in a post, besides me. Most seem to be .NET and/or SP1 problems so far.
Most modern laptops now are able to be factory restored using a combination of F keys or other keys mentioned in the post screens as your laptop boots. Look at your manual. If you have a built in factory partition, this is how you will do it. If not, and you don't have the disk, Microsoft may send you a disk as was related by another poster here. Most OEMs will sell you another recovery disk for a nominal fee for your particular model of laptop. I suggest going straight to the Windows Update and getting all your updates immediately after this re-installation; the Vista firewall is sufficient to protect you until you are done with that. If you don't have a router/firewall I suggest immediately getting a replacement software firewall first then the anti-virus next, and so on. Comodo is another great firewall that works with Vista x64 and I highly recommend it for that operating system. I only recommend the firewall, not any other product, Stand alone solutions are still the best way to go for an in-depth defense.
You may need a lot of RAM to run what you are using on a laptop, Vista handles many of the good security solutions very well on 64bit desktops with at least 4Gbs or RAM and a dual core quad processor, but laptops typically need some horsepower to run much of anything more than the operating system and a few applications.