Hi Naomi

>What is this AutoPatcher?

It is a utility to download all relevant update (Windows 2000+, Office, Supporting Stuff) onto your harddisk so you can do offline updates at your convenience. Run the small update utility and when the updates are downloaded the AutoPatcher.exe to apply the patches.

>I tried it again right now, selected my new settings and looks like this dialog hang again :(

That is sad, I hope you are able to get it to stop doing it automatically.