If files already have been downloaded then remove the files in the updates and updates\0 folder.
You can also delete active-update.xml and possibly updates.xml (stores the update history).

• http://kb.mozillazine.org/Software_Update (Software Update not working properly)

C:\Documents and Settings\<user>\Local Settings\Application Data\Mozilla\Firefox\Mozilla Firefox\updates
(%USERPROFILE%\Local Settings\Application Data\Mozilla\Firefox\Mozilla Firefox)

Download a fresh Firefox copy and save the file to the desktop.

• Firefox 9.0.x: http://www.mozilla.org/en-US/firefox/all.html

Uninstall your current Firefox version, if possible.

• Do NOT remove personal data when you uninstall the current version or you lose your bookmarks and other data in the profile folder.

Remove the Firefox program folder before installing that newly downloaded copy of the Firefox installer.

• It is important to delete the Firefox program folder to remove all the files and make sure that there are no problems with files that were leftover after uninstalling.
• http://kb.mozillazine.org/Uninstalling_Firefox

Your bookmarks and other profile data are stored elsewhere in the Firefox Profile Folder and won't be affected by a reinstall, but make sure that you do not select to remove personal data if you uninstall Firefox.

• http://kb.mozillazine.org/Profile_folder_-_Firefox
• http://kb.mozillazine.org/Profile_backup

• http://kb.mozillazine.org/Standard_diagnostic_-_Firefox#Clean_reinstall

deleted" C:\Documents and Settings\<user>\Local Settings\Application Data\Mozilla\Firefox\Mozilla Firefox\updates" still in loop. if you try to uninstall it prompts you to reboot. if you try to install a fresh copy it asks for a reboot. every action starting the program asks for a reboot. I do not want to lose my entire profile or I would just delete all files since it will not allow an uninstall.

Did you try to delete the current Firefox program folder (C:\Program Files\Mozilla Firefox\) ?