Windows Update [Error number: 0x800A0046]

[Error number: 0x800A0046]

  Please change your Internet Explorer security settings
To save changes to your settings for this website, you need to enable userdata persistence for Internet Explorer. Complete the steps below, and then click Change settings to the left and try saving your changes again.
In Internet Explorer, on the Tools menu, click Internet Options.
Click the Security tab, click the Internet security zone icon, and then click Custom Level.
In the Settings dialog box, scroll to the Miscellaneous section.
Under Userdata persistence , select Enable.
Click OK and when the security warning dialog box appears, click Yes.
 
 Read more about steps you can take to resolve this problem (error number 0x800A0046) yourself.  
 

Userdata Persistance is already select to enable


This is Windows XP SP3 machine running as part of a Small Business Domain,
 All other machines on the network have no trouble updating from Windows Update.


Under services.msc Automatic Updates - Log On  > Log On as Local System Account is enabled

The service is set to Automatic, yet it not started. Pressing start service  , following error pops up:

Eror 0x80004015: The class is configured to run as a security id different from the caller