Try to re-install Windows Update Agent. It looks the issue associated with the same. You can download the standalone installer from official site and run the setup. It will update that automatically. If this does not fix the issue I think you need to re-install all stuff back again. I am sure that WSUS is not at all buggy. You must one by one install Windows Update Agent in each and every client system. Then you can run Windows XP Update KB927891 and upgrade WSUS servers to a higher edition.


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