WSUS 3 client Update Error

More from log...
008-06-16      21:15:51:352      4788      310      Agent      WARNING: Failed to backup the service registration data, error 80070013
2008-06-16      21:15:51:352      4788      310      DtaStor      WARNING: Update Service: Failed to repopulate the backup store
2008-06-16      21:15:51:524      1464      230      AU      FATAL: Failed to get session from datastore, error = 0x80004002
2008-06-16      21:18:11:156      1464      650      Misc      ===========  Logging initialized (build: 7.1.6001.65, tz: -0400)  ===========
2008-06-16      21:18:11:171      1464      650      Misc        = Process: C:\WINDOWS\System32\svchost.exe
2008-06-16      21:18:11:171      1464      650      Misc        = Module: C:\WINDOWS\system32\wuaueng.dll
2008-06-16      21:18:11:156      1464      650      Service      *************
2008-06-16      21:18:11:171      1464      650      Service      ** START **  Service: Service startup
2008-06-16      21:18:11:171      1464      650      Service      *********
2008-06-16      21:18:11:765      1464      650      Agent        * WU client version 7.1.6001.65
2008-06-16      21:18:11:765      1464      650      Agent        * Base directory: C:\WINDOWS\SoftwareDistribution
2008-06-16      21:18:11:843      1464      650      Agent        * Access type: No proxy
2008-06-16      21:18:11:843      1464      650      Agent        * Network state: Connected
2008-06-16      21:17:10:349      2904      bcc      Misc      ===========  Logging initialized (build: 7.1.6001.65, tz: -0400)  ===========
2008-06-16      21:17:10:349      2904      bcc      Misc        = Process: C:\WINDOWS\system32\rundll32.exe
2008-06-16      21:17:10:349      2904      bcc      Misc        = Module: C:\WINDOWS\system32\wuapi.dll
2008-06-16      21:17:10:349      2904      bcc      ARP      Connected to update session.
2008-06-16      21:17:10:349      2904      bcc      ARP      User is allowed to install published content.
2008-06-16      21:17:10:552      1464      974      Agent      ***********  Agent: Initializing Windows Update Agent  ***********
2008-06-16      21:17:10:552      1464      974      Agent      ***********  Agent: Initializing global settings cache  ***********
2008-06-16      21:17:10:552      1464      974      Agent        * WSUS server: HTTP://TB
2008-06-16      21:17:10:552      1464      974      Agent        * WSUS status server: HTTP://TB
2008-06-16      21:17:10:552      1464      974      Agent        * Target group: Test User Group
2008-06-16      21:17:10:552      1464      974      Agent        * Windows Update access disabled: No
2008-06-16      21:17:12:771      1464      650      Report      ***********  Report: Initializing static reporting data  ***********
2008-06-16      21:17:12:771      1464      650      Report        * OS Version = 5.1.2600.3.0.65792
2008-06-16      21:17:12:833      1464      650      Report        * Computer Brand = IBM
2008-06-16      21:17:12:833      1464      650      Report        * Computer Model = 81381FU
2008-06-16      21:17:12:927      1464      650      Report        * Bios Revision = 2FKT19AUS
2008-06-16      21:17:12:927      1464      650      Report        * Bios Name = Phoenix FirstBios(tm) Desktop Pro Version 2.0 for IBM ThinkCentre.
2008-06-16      21:17:12:927      1464      650      Report        * Bios Release Date = 2005-08-19T00:00:00
2008-06-16      21:17:12:943      1464      650      Report        * Locale ID = 1033
2008-06-16      21:17:16:724      1464      974      DnldMgr      Download manager restoring 0 downloads
2008-06-16      21:17:17:052      2904      bcc      ARP      Managed service found.
2008-06-16      21:17:18:818      1464      d34      AU      ###########  AU: Initializing Automatic Updates  ###########
2008-06-16      21:17:19:552      1464      d34      AU        # WSUS server: HTTP://TB
2008-06-16      21:17:19:552      1464      d34      AU        # Detection frequency: 5
2008-06-16      21:17:19:552      1464      d34      AU        # Target group: Test User Group
2008-06-16      21:17:19:552      1464      d34      AU        # Approval type: Scheduled (Policy)
2008-06-16      21:17:19:552      1464      d34      AU        # Scheduled install day/time: Every day at 5:00
2008-06-16      21:17:19:552      1464      d34      AU        # Auto-install minor updates: No (Policy)
2008-06-16      21:17:19:552      1464      d34      AU        # Will interact with non-admins (Non-admins are elevated)
2008-06-16      21:17:34:067      1464      d34      AU      Setting AU scheduled install time to 2008-06-17 09:00:00
2008-06-16      21:17:34:145      1464      d34      AU      AU finished delayed initialization
2008-06-16      21:17:34:145      1464      d34      AU      WARNING: UpdateNow failed with hr:8024afff

Have you looked through previous EE discussions:
http://search.experts-exchange.com/simpleSearch.jsp?q=WSUS+3+client+Update+Error&searchSubmit=1&cid=315&redirectURL=%2F&gSearch=0

The content virtual folder under the WSUS website had been deleted.  I recreated it and all is well.