Ha! Let me guess what it was doing. You'd get your list of updates, hit the install button, and watch it set at 0% for awhile as it tells you it's preparing to download/install, but does nothing.
That is THE most annoying bug with Windows, and for some reason MS has yet to fix it even though it's been present since maybe as far back as Vista. I've spent hours reading up on how to fix it, and even more hours deep down in the guts of Windows trying to get it to work. It's annoying as hell.
...but the real kick in the nuts is that, 99 times out a 100, it's actually downloading and installing those updates, but it's not reporting its progress through the UI. From what I can figure, the automatic updater has grabbed onto those updates, and is doing its own thing in the background. The only way you can figure out if it's doing that is by looking at the list of updates, letting it sit there at 0% for an hour or so, rebooting your computer, seeing if it gives you any "updating Windows" messages as it boots down, then checking the list again after to see if the update list is any smaller than it was before.
From my experiences, it only happens on a freshly installed copy of Windows, when you have a crapton of patches to get. The best thing to do is set it to grab important updates automatically, then let the computer work on itself for an hour or so before you start messing with it.