BITS Error 2: The System cannot find the file specified

I am trying to update my system with windows update, but it doesnt' work.. I have narrowed it down to BITS not starting.. When I open services and try to start it manually, I get the error "Windows could not start the BITS service on LOCAL COMPUTER. Error 2: The system cannot find the file specified" I have tried the Microsoft FixIt and the Fix Windows Update utility from...