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Tried installing KB2835361 again. Same thing happened. Crashed Firefox and IE9. Had to do a System Restore to get internet functionality. Do not have Microsoft Office apps on computer. Use (gasp) Word Perfect X6 and Quattro Pro X6. Have had no complaints. KB 2835361 will be hidden until fixed.

I called Microsoft on the problem. The solution was to hide the update.

Ran a malwarebytes Pro full scan, also spybot and Kaspersky’s TDSS antirootkit. Found nothing. Reinstalled the update and the problem persists. Did a system restore to roll back the update and everything is fine. Thanks for your responses but I guess I will have to wait until Microsoft fixes the update.