WSUS clients "Not Yet Reported"

I'm running WSUS on W2K3 server. I don't have a huge number of workstations
(55) to maintain but cannot get them to report their status to the WSUS
server despite the fact that they are listed in the correct computer group.

I have established a seperate group policy for WSUS and all workstations are
listed in the group assigned by the policy but only our exchange server and
the WSUS server have reported their status and received updates from WSUS.

I previously had WSUS services running on another server (Domain Controller)
and all worked well but decided to move WSUS from the DC to a stand-alone
server which also handles backup tasks for the domain (Veritas V10)

The DC incidentally, is also listed in WSUS as having "not yet reported". I
also completely uninstalled WSUS services from the DC.

I have tried a couple of Microsoft's hotfixes for KB910847 and KB909131, but
neither hotfix seemed to acheive the desired outcome. I'm sure it has
something to do with the fact that WSUS was running on another server prior
to being intalled on the present WSUS/Veritas server, but just not sure what
to try next in order to resolve the issue.

Any help on this would be appreciated.

Try this on one of the affected clients:

Stop the Automatic Updates service.
Delete the %windir%\SoftwareDistribution folder.
Start the Automatic Updates service.
Wait 10 minutes
>From a CMD prompt issue 'wuauclt /reauthorization /detectnow'

If the client does not show up on the WSUS server as reported within 20
minutes please post the last 30 minutes of the WindowsUpdate.log
commencing with the service startup.

>From Mike:

Tried the diag tool and results appear below.


WSUS Client Diagnostics Tool

Checking Machine State
Checking for admin rights to run tool . . . . . . . . . PASS
Automatic Updates Service is running. . . . . . . . . . PASS
Background Intelligent Transfer Service is not running. PASS
Wuaueng.dll version 5.8.0.2469. . . . . . . . . . . . . PASS
This version is WSUS 2.0

Checking AU Settings
AU Option is 3 : Notify Prior to Install. . . . . . . . PASS
Option is from Policy settings

Checking Proxy Configuration
Checking for winhttp local machine Proxy settings . . . PASS
Winhttp local machine access type
<Direct Connection>
Winhttp local machine Proxy. . . . . . . . . . NONE
Winhttp local machine ProxyBypass. . . . . . . NONE
Checking User IE Proxy settings . . . . . . . . . . . . PASS
User IE Proxy. . . . . . . . . . . . . . . . . NONE
User IE ProxyByPass. . . . . . . . . . . . . . NONE
User IE AutoConfig URL Proxy . . . . . . . . . NONE
User IE AutoDetect
AutoDetect not in use

Checking Connection to WSUS/SUS Server
WUServer = http://backup
WUStatusServer = http://backup
UseWuServer is enabled. . . . . . . . . . . . . . . . . PASS
Connection to server. . . . . . . . . . . . . . . . . . PASS

WinHttpDownloadFileToMemory(szURLDest, NULL, 0, NULL, NULL, NULL,
&downloadBuffe
r) failed with hr=0x80190193

No Error description could be found

This could be the issue. The client is not correctly SelfUpdating: