This software also fails to install - However it does not appear in the Windows 8 automatic downloads, it is only visible from the Intel Drivers + Downloads site:
Intel HM77 Chipset Driver - Chipset_Driver_C0M3R_WN_220.127.116.111_A01.EXE (9MB)
I am sorry to hear you are having problems with the unit but let me help you with that.
Based on the information you provide, the driver you are trying to install is the Chipset driver for your system. It is important to mention that the chipset driver is provided by the Computer Manufacture only because they sometimes set limitations in the software.
My best recommendation for you is to contact the computer manufacture and get the latest chipset driver for your system. The one is showing under Windows Updates you can just ignore it if you do not want to install it or needed.