The cynic in me says that there will be more and more stories like this that seem to be Windows 7 specific in a move to sway people to move on to Windows 8. For me though, this is just another reason to let updates rest for a month or so before downloading and installing them.
This update messed 2 computers in my office and 6 from my friends.
All issues only happened on 32-bit OS with Win 7 brazilian portuguese language.
The computer shoppings in my city were flooded with costumers complaining...really messy stuff.
It´s rather easy to repair even without a restore point, but you need to know what to do.
My wife's laptop has Vista 32 bit on it and she just mentioned that it is undergoing this same problem this evening. I was waiting til the weekend to fix it for her. I am guessing this is the same cause, as she said it went into this reboot loop after she did an update. Not Brazilian version either.