Windows Update has done similar things as the original author described on my system as well. Note the following WindowsUpdate.log entries:
Agent * Title = LG - Display - LG L192WS
Agent * UpdateId = {AF6E4D25-BEBD-4F8A-8C1B-13F1354A98F3}.102
Agent * Title = NVIDIA Corporation driver update for NVIDIA nForce Serial ATA Controller
Agent * UpdateId = {D2C6F1A9-8042-43CB-BEFC-998CE977D4B5}.100
Both of these drivers when installed by WU, causes my machine to attempt repairs, and afterwards, end up not being installed. In fact, ALL updates end up being NOT installed. I can archive and send this file upon request.
For the time being, I am ignoring all hardware updates for Windows 8 until this matter is dealt with.