I have not seen that particular "not responding" error when installing UPD, so I would suspect it may be something unique to your environment. Do you have a large number of drivers and/or print queues on this server? Is the server resource constrained or being used for multiple purposes (print server + Exchange server + webserver)? Is the server running in VM with limited memory and/or CPU?
Generally speaking, when I see something like that I start with some cleanup. I remove any unused drivers, reboot the sytem, etc.