Automatic Update fails on Windows 2000 Server

I've got a couple of Windows 2000 servers (SP4) that cannot upgrade using Automatic Updates. Everything seems to be working normally up to the point where the downloaded updates are installed. Automatic Updates reports that "Updates were unable to be succesfully installed". Below is the tail end of the update log showing the point of failure...


   2006-06-22      13:46:42      2076      b30      Agent      *********
   2006-06-22      13:46:42      2076      b30      Agent        * Updates to install = 1
   2006-06-22      13:46:42      2076      b30      Agent        *   Title = <NULL>
   2006-06-22      13:46:42      2076      b30      Agent        *   UpdateId = {0E540C94-4E77-4D30-A783-1557FB990B27}.106
   2006-06-22      13:46:42      2076      b30      Agent        *     Bundles 1 updates:
   2006-06-22      13:46:42      2076      b30      Agent        *       {24903EB0-4046-4586-88AD-3B362E7B89E3}.106
   2006-06-22      13:46:44      2076      b30      Agent      WARNING: Failed to evaluate Installed rule, updateId =    {ED300F67-421C-4C08-B3BA-F35C55F3B427}.100, error = 0x80041017
   2006-06-22      13:46:47      2076      b30      Handler      Attempting to create remote handler process as WISCOIND\Administrator in session 0
   2006-06-22      13:46:47      2076      1238      AU      AU setting client response for sessionId 0x0 to 'Active'
   2006-06-22      13:46:47      2076      1208      AU      AU setting client response for sessionId 0x0 to 'Active'
   2006-06-22      13:46:48      4548      1198      Misc      ===========  Logging initialized (build: 5.8.0.2469, tz: -0500)  ===========
   2006-06-22      13:46:48      4548      1198      Misc        = Process: C:\WINNT\system32\wuauclt.exe
   2006-06-22      13:46:48      4548      1198      AUClnt      FATAL: Error: 0x80070005. wuauclt handler: failed to spawn COM server
   2006-06-22      13:46:48      2076      b30      Handler      FATAL: 0x80070005: ERROR: Remote update handler container process created (PID: 4548), but              exited before signaling event
   2006-06-22      13:46:48      2076      b30      Agent        * WARNING: Exit code = 0x80070005
   2006-06-22      13:46:48      2076      b30      Agent      *********
   2006-06-22      13:46:48      2076      b30      Agent      **  END  **  Agent: Installing updates [CallerId = AutomaticUpdates]
   2006-06-22      13:46:48      2076      b30      Agent      *************
   2006-06-22      13:46:48      2076      b30      Agent      WARNING: WU client failed installing updates with error 0x80070005
   2006-06-22      13:46:48      2076      b30      AU      >>##  RESUMED  ## AU: Installing update [UpdateId = {0E540C94-4E77-4D30-A783-1557FB990B27}]
   2006-06-22      13:46:48      2076      b30      AU        # WARNING: Install skipped
   2006-06-22      13:46:48      2076      b30      AU        # WARNING: Install call failed, reboot required = No, error = 0x80070005
   2006-06-22      13:46:48      2076      b30      AU      #########
   2006-06-22      13:46:48      2076      b30      AU      ##  END  ##  AU: Installing updates [CallId = {FE98541A-C1C5-4390-BA7D-3BE344C9D269}]
   2006-06-22      13:46:48      2076      b30      AU      #############

I have found that the failed updates can be installed manually without a problem.

Help!