windows options grayed out

Tested and worked on : Win 7 and 8

To remove the registry keys to allow the Windows Automatic Updates to be altered, do the following:

1. Do one of the following,
   • For Windows XP, click Start > Run.  Type regedit and press Enter.
   • For Windows Vista/7, click Start and type regedit in the Search Programs and Files field. Then right-click on regedit in the programs list and select Run as Administrator.
2. Within the Registry Editor, navigate to HKEY_LOCAL_MACHINE\SOFTWARE\Policies\Microsoft\Windows\WindowsUpdate\AU
3. On the right side of the window, locate AUOptions and NoAutoUpdate. Delete both of these registry keys.
4. Navigate to HKEY_CURRENT_USER\SOFTWARE\Microsoft\Windows\CurrentVersion\Policies\WindowsUpdate
5. On the right side of the window, locate DisableWindowsUpdateAccess and delete it. 
6. Close the Registry Editor.
7. Restart your computer. 

source: http://helpdesk.illinoisstate.edu/kb/1676/Windows_Automatic_Updates_settings_are_grayed_out/