MSE v1.0.1961.0 Upgrade out now

I submitted a ticket to MS - and got prompt response - seems as though a file in MSE was causing this problem. MS Support called and corrected it last night. Evidently this problem was fairly common. Just in case anyone else is experiencing the problem, the fix was:

Go to C:\ProgramData\Microsoft\Microsoft Security Essentials\Support and delete MSSEOOBE.etl and reboot. After reboot this file should be recreated and the error should be gone. When you delete MSE this folder remains and the files get updated when you run MSE. Probably the one file was not updating properly and causing the failure.

 

Weird issue... but glad to hear you got it sorted