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SBS 2008: Error message - Cannot display Software Update Settings

When accessing the the Updates tab on Security screen on the Windows SBS Console, the following error message occurs when clicking on Change the software update settings:

Cannot display Software Update Settings...The Update Services group policy settings are not accessible.  For resolving this issue, please contact Microsoft Product Support.

Needless to say, updates are not getting pushed out to the clients either.  I can create group policies manually, but it might break the SBS components.  Has anyone seen this before?  This SBS 2008 was installed in migration mode from a SBS 2003 box.
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WSUS 3.0 SP1 is installed, but has not been configured yet.  When you run the WSUS configuration wizard, does it create the necessary group policies for you?  Is your server SBS 2008?
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I did some more digging and this is what I found.  I set up a second SBS 2008 server with a regular install, as opposed to a migration install.  

Once I had the second server up and going, I went to the Group Policy Management window and found 3 policies that were created by the clean install >> Update Services Client Computers Policy, Update Services Common Settings Policy, Update Services Server Computers Policy.

These policies did not appear in my first server (migration install).  So I created the policies manually on the first server.  The console now works and is reporting updates properly.  When I make changes in the console settings, it automatically makes changes in the Group Policy Objects.  

I don't know what exactly happened on the migration install...although I did have some custom policies on the previous SBS 2003.  They may have interfered with the new object creation.
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