Obligatory: Microsoft are a bunch of idiots.
Here's my long battle with installing Win7's SP1 on my M1330 laptop (Intel GMA). First, it didn't show up on Windows update, so I went and downloaded the redistributable at full size (even though I had most of the hotfixes and needed only like 80 megs of the update). The redist would never install, gives me error and rolls back changes. It would give me an error as vague as yours.
Somehow, trying to install the redist pack enabled Windows Update to show SP1 was an available update at 86 or so megs, so I thought, "Great, this should surely work." Unluckily enough, same bullshit. At least now I had an error code though: 8007370B.
Awesome, at least then I figured I was getting somewhere. A number of google searches for that specific error code revealed all these hoops that had to be jumped through to get down to why it wouldn't install, I performed all of them, even down to the "windows update readyness tool" or some BS like that. Nothing worked.
So I said screw it. I've spent the last 3 months without SP1 on my laptop even though on my desktop (which I used the same Win7 installation disk for), SP1 installed fine.
Today I decided to perform a backup of my laptop drive so I pulled it out and connected it to my desktop when I got curious, I had an extra 320 Scorpio Blue laying around so I tossed it into my M1330 and gave it a fresh install of Win7 to test out SP1. Guess what? Still wouldn't install...same error code. On a FRESH installation of Windows.
I'm now convinced there exists certain hardware configurations or certain device drivers that somehow get in the way of SP1 from installing. There's no other explanation.
/end rant and shitty story.
Good luck with your case.
EDIT: Oh, if you've got the patience, just reinstall Windows with SP1 slipstreamed in. I'm probably going to end up doing that on my laptop but I'm afraid it might create some sort of space/time continuum vortex that would be the end of our universe as we know it. Anyway, if the world ends within the next week, sorry guys. Don't blame me though, blame Microsoft.