Forever undoing changes

I have tried resetting back to the factory ASUS image and the updates will download (they say 0kb/0% for awhile but the softwaredistribution folder starts filling right away) and install. After going to restart the machine with said updates installed it will then attempt to install updates and then fail to say undoing changes. Thanks for your help in advance!

Hey mate,

Scan for malware, just to ensure you're good in this department. A very good tool to use is malwarebytes' free program: Malwarebytes | Free Anti-Malware & Internet Security Software

See if running this tool helps: Windows Update error "0x80070002" or "0x80070003"

Here are some troubleshooting steps to try: Troubleshoot problems with installing updates - Windows Help & Fix Microsoft Windows Update Issues

Failing that, I recommend a NON-factory refresh (as you've already done a factory restore recently, it can't hurt then to do this method). If you have the media and are willing to read and follow ALL directions, see this: http://www.eightforums.com/tutorials/2293-refresh-windows-8-a.html
If you DON'T have the media, see this: http://www.eightforums.com/tutorials/18052-refresh-reset-windows-8-without-installation-disk.html