Hi RayW:
Try verifying & repairing disk permissions: Mac HD>Applications>Utilities>Disk Utility. Select your Mac HD, then "Verify Permissions" first. Then "Repair Permissions".
Also delete the /Library/preferences/com.apple.SoftwareUpdate.plist file. It is found in Mac HD>Library>Preferences.
Restart your Mac and try using software update again.
Hope that helps!
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