Not sure why, but windows update takes forever to search on a clean install. I did lots of clean installs of Windows 7 before, but never had an issue with receiving updates. But this time, it just doesn't go further in receiving updates.
I don't have any firewalls or antivirus programs installed on this system. Just fresh install of windows 7. Tried both pro and enterprise versions with same result.
Here is onedrive link for the log file