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WSUS 3 and XPE (Embedded) give status but the machines don't update (no repository on WSUS 3)

We have WSUS 3 running with XP, 2000 and 2003 machines just great.  Our XPE machines are reporting status, but don't seem to update.

So... the question is, why won't my XPE machines update?  I am getting status for them, but we are setup such that we DO NOT have a repository on our WSUS3 server.  We want them to pull direct from the internet since they are remote offices and they would KILL our VPN/WAN bandwidth.  I'm wondering in XPE if it behaves the same way  XP/2000 and 2003 do, whereby they pull updates from the internet but use WSUS as the "traffic cop" for directing updates, etc.

Ideas?
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Don
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jgantes

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Let me take a gander at that.  So far haven't found much on google.
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