[08/26/13 10:32:41.791][GoogleUpdate:goopdate][4744:868][CopyAndValidateFiles][from=C:\Users\Prad\AppData\Local\Temp\GUM7502.tmp\3rdBenchSetup.exe][to=C:\Users\Prad\AppData\Local\3rd Bench\Update\1.3.23.0\3rdBenchSetup.exe][overwrite=1][destination file exists=0]
[08/26/13 10:32:41.792][GoogleUpdate:goopdate][4744:868][File::Copy - CopyFile failed][from=C:\Users\Prad\AppData\Local\Temp\GUM7502.tmp\3rdBenchSetup.exe][to=C:\Users\Prad\AppData\Local\3rd Bench\Update\1.3.23.0\3rdBenchSetup.exe][replace=1][0x80070002]
[08/26/13 10:32:41.792][GoogleUpdate:goopdate][4744:868][copy failed][from=C:\Users\Prad\AppData\Local\Temp\GUM7502.tmp\3rdBenchSetup.exe][to=C:\Users\Prad\AppData\Local\3rd Bench\Update\1.3.23.0\3rdBenchSetup.exe][0x80070002]
[08/26/13 10:32:41.792][GoogleUpdate:goopdate][4744:868][SetupFiles::CopyInstallFiles][Done]
[08/26/13 10:32:41.792][GoogleUpdate:goopdate][4744:868][Failed to copy the files][0x80070002]
[08/26/13 10:32:41.792][GoogleUpdate:goopdate][4744:868][SetupFiles::Install failed][0x80070002]
We can see that the setup code fails to copy 3rdBenchSetup.exe. This file, along with others, are included in the untagged GoogleUpdateSetup.exe. GoogleUpdate.exe is the shell for the Omaha updater, and it does not contain the files. Therefore, the setup code can't find them.
I hope this helps. Thank you for attaching the log files, we are on the right track, and at any rate, with the log files we'd be able to see what is going on.