XPS M1330 applying MS updates after reloading causes lock ups

I'm working on an XPS M1330 for a friend.  It is running Vista 32 bit.  The original problem was that it locked up when going on Internet.  System was poorly protected and there was no important data so I did a reload of the OS from the Utility partition following the current instructions from support.dell.com.  I believe the image on the drive is Vista SP1.

Initial load went fine.  Vista loads, connects to the Internet and runs local programs without problems.

When I install MS updates, the first two or three which update the Update program run fine.  Then it hits a bundle of about 50 updates and something in there causes the problem.  Once it's been loaded, I can't use the machine.  The login screen appears normal and accepts the user's password.  Sometimes the desktop will come up, but the blue spinny wheel never stops and while the mouse does move, clicking does nothing.  I cannot get Task Manager up or activate the Start menu.  Pressing the power button does nothing.  It doesn't power down or go into sleep mode.  Sometimes  I get only a black screen.

BIOS is current.  Booting with the debug log on, shows the CRCdisk as the last successfully loaded driver.

I have tried using automatic updates. First pass (to update the Update program) goes fine.  Second pass goes fine.  After the third pass, it locks up.

I have tried doing the updates manually.  First pass, OK.  For the second pass I selected only Vista updates.  I believe it worked ok.  Third pass I started with the .Net updates.  This seems to be the cause of the problem.

I have searched for similar reports but haven't found anything close.

I have run scandisk and it appears to be OK

I have tried this about 8 times, each time changing the order of loading.  Drivers first, updates second.  Updates first.  With McAffee installed and without. Every time I use a wired Internet connection.

Help!  Any ideas?  I can't believe my only choice is to load the updates one at a time until it fails, then do it all again and skip that one.

Thanks in advance,

Tom