I've been messing about with this all day, and from what I can see the problem lies is the Microsoft Visual C++ 2008 Redistributable SP1 - 9.0.30729.17 rather than in the update.
After uninstalling, reinstalling and restarting all day I've found a way that works for me that fixes the problem, and hopefully will for you too.
If you already have eraser installed, then uninstall all the VC Runtimes than starts with Microsoft Visual C++ 2008 Redistributable (you don't need to remove Microsoft Visual C++ 2005 if it's installed)
If you haven't installed Eraser yet, then install it, but cancel the installation of the Microsoft Visual C++ 2008 Redistributable when it starts to install. Again if the2008 Redistributables have already been installed by possibly another program, remove them.
Download the Microsoft Visual C++ 2008 Redistributables and you
MUST install them in the order of the links below.
1. Choose the version for your OS 32 bit or 64 bit and install this first
64 bit Version -
http://www.microsoft.com/downloadS/...71-E2D6-4230-B809-9A8D7548C1B6&displaylang=en
32 bit Version -
http://www.microsoft.com/downloadS/...34-3E03-4391-8A4D-074B9F2BC1BF&displaylang=en
2. Choose the version for your OS 32 bit (x86) or 64 bit (x64) from the webpage and install this second
Keep this file handy we will be using it again at Step 4
http://www.microsoft.com/downloads/...FamilyID=2051a0c1-c9b5-4b0a-a8f5-770a549fd78c
3. Choose the version for your OS 32 bit or 64 bit and install this third
64 bit Version -
http://www.microsoft.com/downloads/...CA-337F-4B40-8C14-157CFDFFEE4E&displaylang=en
32 bit Version -
http://www.microsoft.com/downloads/...75-3B97-4AB7-A40D-3802B2AF5FC2&displaylang=en
4. Run the file again that you downloaded at Step 2 (the ATL security Update). You will be given the option to Repair or Uninstall, so select Repair and Next and cary on installing it.
5. Restart you computer and hopefully Eraser will not be freezing anymore on the right click.
I have not tested this on a 32 bit system only 64 bit, but I see no reason why it wouldn't work in either. I can only go by my own system, so although it worked for me, I can't guarantee it will work for you. If however, you found the problem as annoying as me, then you have nothing to lose by trying it other than 10 or 15 minutes.
As to what is causing the problem I don't know, and I'm happy to help continue find out, all I know is this solved it for me.