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Ok, finally finding the time to update everyone how I was able to resolve the issue with KB3110329 not installing.
I followed the advice of Sumit Dhiman2 found on this page: http://answers.microsoft.com/en-us/windows/forum/windows_10-update/hard-reset-windows-updates/2e26953d-58c4-4704-b627-4a743e87e15c?tm=1447931905306
I downloaded the Windows Update Reset Script for Windows 7, 8, 8.1: https://onedrive.live.com/download?resid=16823703D6E1C96C!1967&authkey=!ALp1LxNoyy82EXY&ithint=file%2czip
The bat file deletes all of the Windows Update history, resets a number of OS items and that cleared up the situation. I ran Windows update again and KB3110329 was listed as an available update and installed fine with the required reboot.
The previous Windows Update History is no longer available but my Windows 7 is fully up-to-date. Thanks,
Sumit Dhiman2 !
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