Thanks for your help.  We have solved the issue, I will post the solution here 
if it helps anyone in the future. The error message logged in the hotfix log 
file  (Eg: C:\ColdFusion10\cfusion\hf-updates\hf-10-00007) is the following:

Failed to copy hotfix files:C:\Users\xxx\002873.tmp\dist\cfusion
Status: FATAL ERROR
Additional Notes: FATAL ERROR - Failed to copy the hotfix files to the target 
location:C:\ColdFusion10\cfusion
FATAL ERROR - C:\ColdFusion10\cfusion\bin\coldfusion.exe (The process cannot 
access the file because it is being used by another process)

Several blog posts refer to permission problems, such as making sure the 
account under which CF10 runs has local admin access, or that the cfusion 
directory have appropriate permissions.  We had tried these solutions, and 
several variations without luck. We had also stopped all CF services and 
applied the HF manually but the same error persisted.

In our case, we renamed coldfusion.exe notated in the error log above, applied 
the hotfix, and everything worked. So, I don't believe it was really a 
permissions issue but rather (as the error log was trying to tell us), that the 
coldfusion.exe was in use.


> We are installing CF10 Enterprise on Windows 2008 RC2 with IIS 7.
> We installed using all default selections, straight-forward 
> installation, and applied the mandatory update. So far, so good. When 
> we go to the updates page for automatic updates for the latest current 
> hotfix 7 (at the time of this post), which is cumulative, the install 
> and download process runs fine, the instance restarts, but then when 
> we check again to see the available updates, it shows all the updates 
> from 1 to 7 again, as if we didn't apply the updates at all. Installed 
> updates tab shows no updates having been applied. However, looking at 
> the system info page, the udpate level shows HF7.
> 
> We tried a variation, applying one hotfix at a time. This worked 
> through hot fix 2, but after applying HF 4, it 'froze' there with the 
> same problem as described above, not showing any fixes having been 
> applied after HF 2. This is incredibly frustrating. I have no idea if 
> HF's have been applied, and am not sure what to think about the sys 
> info page indicating hotfix level. We are still living in CF update 
> hell. Any ideas appreciated!
> 
> Thanks,
> 
> Jeff 

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