I think you are correct about updating. Its been almost 6 months since I've updated the MAC OS X software. My Mac downloads and updates all softwares except the MAC OS X update. This I suppose is since the last time I re-installed my Mac due to locking my hard-disk permanently. Everything else since the re-installation works just fine except for the Mac Update (which completes download but gets stuck at installing).

Also on start on pressing alt/option for the partitions it shows 3 disks, 2 Mac HDDs and one Windows (since re-installation). Whereas it doesn't even display the extra one when i thought of deleting it by using Disk Utility.

Any fix for that? May be this can fix the rest.
Thanks