I was experiencing the same issue this summer, and following the advice of several different methods I eventually removed the offending bits that were causing this error. It's been too long now, and I can't remember the exact sequence/method that worked for me.
My reason for replying is that I had not cleaned out my Recycle Bin since I had fixed the error, and during a virus scan today the trojan Sefnit.AU was detected...in my recycle bin. Reading about it here http://www.enigmasoftware.com/trojanwin32sefnitau-removal/ I see that It will run as a process under FlashPlayerUpdateService.exe. The timing of the error occuring, and me installing a (as I now realise) suspect P2P file sharing program(Bitlord), and the trojan appearing in my recycle bin has led me to assume that it was to blame for this error and the difficulty in removing it.
Run a scan if you haven't recently.