Hi,
Your third-party firewall/security suite is probably seeing updated IE files
as a new program and preventing IE from accessing the web/internet/network.
See: 942818- Error message after you install a Windows IE7 update:
http://support.microsoft.com/kb/942818
Norton is notorious for doing this without informing the user.

Turn on the Windows Firewall from Control Panel> Windows Firewall so that
you will have some protection while uninstalling/reinstalling.

Uninstall KB950759. Uninstall the Norton, McAfee or other firewall/security
suite.

Removing McAfee may require a removal tool
http://ts.mcafeehelp.com/displaydoc.asp?docid=408302&CategoryId=120919
Removing Norton/Symantec products completely will require the removal tool
http://service1.symantec.com/Support/tsgeninfo.nsf/docid/2005033108162039?OpenDo
cument&lg=en&ct=us&seg=hho&src=hot

Then re-download / reinstall the update KB950759. Reinstall the Norton /
McAfee software.

Hope this helps,
Don
[MS MVP- IE]