This issue is not really a Captools/net issue, but one that might be encountered by users upgrading to SQL Server 2008 R2

The problem has to do with the Microsoft Update erroring out with the error code 84C40007.

The following links indicate that the Microsoft .NET Framework 4 "Extended" Full Install (869 KB) is required.

http://support.microsoft.com/kb/2500042 - This support page for this error that will direct people to another page:

http://www.microsoft.com/downloads/en/details.aspx?FamilyID=9cfb2d51-5ff4-4491-b0e5-b386f32c0992&displaylang=en

If one were to download and install the full install of .NET 4 from the last link above Microsoft says that that should allow people to get the SQL Server 2008 R2 update.  One can verify installation of .NET 4 extended in the "Programs and Features" section of the control panel in Windows 7.