If you are having issues with Windows Update failing, try running the Microsoft System Update Readiness Tool here: http://support.microsoft.com/kb/947821
This tool has fixed Windows Update issues for me on Server 2008R2 installs.
If you are having issues with Windows Update failing, try running the Microsoft System Update Readiness Tool here: http://support.microsoft.com/kb/947821
This tool has fixed Windows Update issues for me on Server 2008R2 installs.