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There is a Registry Hack provided by The How-To Geek on how to disable this here:

Stop Windows Update from Hijacking the Sleep/Shutdown Button

Add a 32-bit DWORD value called NoAUAsDefaultShutdownOption to HKEY_CURRENT_USER\Software\Policies\Microsoft\Windows\WindowsUpdate\AU with a value of 1. No reboot should be necessary.

You can apply it manually or download the registry fileregistry file which enables and disables this feature. I deploy it to all Windows 7 machines I own and it works beautifully.

There is a Registry Hack provided by The How-To Geek on how to disable this here:

Stop Windows Update from Hijacking the Sleep/Shutdown Button

You can apply it manually or download the registry file which enables and disables this feature. I deploy it to all Windows 7 machines I own and it works beautifully.

There is a Registry Hack provided by The How-To Geek on how to disable this here:

Stop Windows Update from Hijacking the Sleep/Shutdown Button

Add a 32-bit DWORD value called NoAUAsDefaultShutdownOption to HKEY_CURRENT_USER\Software\Policies\Microsoft\Windows\WindowsUpdate\AU with a value of 1. No reboot should be necessary.

You can apply it manually or download the registry file which enables and disables this feature. I deploy it to all Windows 7 machines I own and it works beautifully.

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BinaryMisfit
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There is a Registry Hack provided by The How-To Geek on how to disable this here:

Stop Windows Update from Hijacking the Sleep/Shutdown Button

You can apply it manually or download the registry file which enables and disables this feature. I deploy it to all Windows 7 machines I own and it works beautifully.