I found a solution here which worked
http://social.technet.microsoft.com/Forums/en/winserverhyperv/thread/106471aa-cc0e-40c8-b5c1-d863bb8e2aed
Rename pending.xml in System Recovery options
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When an update is installed, some operations need to be performed when the computer is restarted. These operations are recorded in the pending.xml file. If this problem continues, we may perform the following steps to rename the pending.xml file and delete the corresponding registry key to let the system bypass remaining update operation. You will be able to logon to the system again. However, please note that after this operation is performed the update may not be installed properly and certain Windows features may not function properly. It is recommended that you backup your data and reinstall Windows.
1. Insert the Windows Server installation disc in the disc drive, and then restart the computer.
2. When you are prompted to restart from the disc, press any key.
3. When you are prompted, configure the Language to install, Time and currency format , and Keyboard or input method options that you want, and then click Next .
4. On the Install Windows page, click Repair your computer .
5. On the System Recovery Options page, click the version of the Windows Server operating system that you want to repair, and then click Next .
Use the System Recovery options to rename the Pending.xml file and edit the registry :
1. On the System Recovery Options page, click Command Prompt .
2. Type cd C:\windows\winsxs , and then press ENTER.
3. Type ren pending.xml pending.old , and then press ENTER.
4. Type regedit , and then press ENTER.
5. Select HKEY_LOCAL_MACHINE .
6. On the File menu, click Load Hive .
7. Locate the following folder: C:\windows\system32\config\components
8. When you are prompted for a name, type Offline_Components .
9. In Registry Editor, locate and then delete the following registry subkey:
HLKM\Offline Components\AdvancedInstallersNeedResolving
HKLM\Offline Components\PendingXmlIdentifier
Exit Registry Editor :
9.1. At the command prompt, type exit to exit Registry Editor.
9.2. Press ENTER.
9.3. Click Restart .
Best regards,
Vincent Hu