I've encountered my first not-minor issue with Windows 7. It will not let me automatically search Windows Update for device drivers or get realistic device icons... because I can't save the settings.
That's the status I'm stuck in. If I select any other option and hit "save changes", a command window pops up, says *something*, and then promptly disappears before I can see what it says. The settings end up not changing.
I can't find anything like this on Google, and I'm hoping someone here knows what's going on.
I managed to fix this, and the cause was rather... unusual. I had added "Take Ownership" into the Explorer context menu. The shell popping up when I tried to hit save changes in that WU window in post #1 was the prompt triggered by Take Own, trying to give me ownership of some WU-related file... probably wupdate.exe itself.
I tried to start Resource Monitor from Task Manager's Performance tab when I also saw a shell pop up and close... at that point I had an idea of what that might've been from. A few (ultimately successful) attempts at trying to print-screen before the shell closed later, I had found the culprit. After removal of the offending registry keys and a reboot, problem solved.