WSUS 2.0 on SBS 2003 not detecting some PC

I have been running WSUS 2.0 on an SBS 2003 Premium Server. In the last few weeks I get Windows Update error messages with Event Id 16. It seems that the server (running WSUS) and intermittentent 2 work stations failed to contact WSUS. This has been going on for several weeks now. Attched is the Windowsupdate.log file. The error in SBS shows "Failed to synchronize, error = 0x80070057". Any help be appreciated.
2009-06-28	15:04:39	 956	7bc	Setup	  * Inf file: C:\WINDOWS\SoftwareDistribution\SelfUpdate\Default\wusetup.inf
2009-06-28	15:04:39	 956	7bc	Setup	Update NOT required for C:\WINDOWS\system32\cdm.dll: target version = 5.8.0.2607, required version = 5.8.0.2607
2009-06-28	15:04:39	 956	7bc	Setup	Update NOT required for C:\WINDOWS\system32\iuengine.dll: target version = 5.8.0.2607, required version = 5.8.0.2607
2009-06-28	15:04:39	 956	7bc	Setup	Update NOT required for C:\WINDOWS\system32\wuapi.dll: target version = 5.8.0.2607, required version = 5.8.0.2607
2009-06-28	15:04:39	 956	7bc	Setup	Update NOT required for C:\WINDOWS\system32\wuauclt.exe: target version = 5.8.0.2607, required version = 5.8.0.2607
2009-06-28	15:04:39	 956	7bc	Setup	Update NOT required for C:\WINDOWS\system32\wuauclt1.exe: target version = 5.8.0.2607, required version = 5.8.0.2607
2009-06-28	15:04:39	 956	7bc	Setup	Update NOT required for C:\WINDOWS\system32\wuaucpl.cpl: target version = 5.8.0.2607, required version = 5.8.0.2607
2009-06-28	15:04:39	 956	7bc	Setup	Update NOT required for C:\WINDOWS\system32\wuaueng.dll: target version = 5.8.0.2607, required version = 5.8.0.2607
2009-06-28	15:04:39	 956	7bc	Setup	Update NOT required for C:\WINDOWS\system32\wuaueng1.dll: target version = 5.8.0.2607, required version = 5.8.0.2607
2009-06-28	15:04:39	 956	7bc	Setup	Update NOT required for C:\WINDOWS\system32\wucltui.dll: target version = 5.8.0.2607, required version = 5.8.0.2607
2009-06-28	15:04:39	 956	7bc	Setup	Update NOT required for C:\WINDOWS\system32\wups.dll: target version = 5.8.0.2607, required version = 5.8.0.2607
2009-06-28	15:04:39	 956	7bc	Setup	Update NOT required for C:\WINDOWS\system32\wups2.dll: target version = 5.8.0.2607, required version = 5.8.0.2607
2009-06-28	15:04:39	 956	7bc	Setup	Update NOT required for C:\WINDOWS\system32\wuweb.dll: target version = 5.8.0.2607, required version = 5.8.0.2607
2009-06-28	15:04:39	 956	7bc	Setup	  * IsUpdateRequired = No
2009-06-28	15:04:44	 956	7bc	PT	+++++++++++  PT: Synchronizing server updates  +++++++++++
2009-06-28	15:04:44	 956	7bc	PT	  + ServiceId = {3DA21691-E39D-4DA6-8A4B-B43877BCB1B7}, Server URL = http://tlwsvr:8530/ClientWebService/client.asmx
2009-06-28	15:04:48	 956	7bc	Agent	WARNING: Failed to evaluate Installable rule, updateId = {FFE143E3-B999-4C99-8D58-A15F82136FA7}.100, error = 0x80004005
2009-06-28	15:04:48	 956	7bc	Agent	WARNING: Failed to evaluate Installed rule, updateId = {FFE143E3-B999-4C99-8D58-A15F82136FA7}.100, error = 0x80004005
2009-06-28	15:04:48	 956	7bc	Agent	WARNING: Failed to evaluate Installable rule, updateId = {0ED1CF98-2971-48EF-B50E-1E35ACDAC815}.100, error = 0x80004005
2009-06-28	15:04:48	 956	7bc	Agent	WARNING: Failed to evaluate Installed rule, updateId = {0ED1CF98-2971-48EF-B50E-1E35ACDAC815}.100, error = 0x80004005
2009-06-28	15:05:02	 956	7bc	EEHndlr	FATAL: EE Serializer: Encountered unknown expression b.LicenseDword
2009-06-28	15:05:02	 956	7bc	EEHndlr	FATAL: Parse failed: error 0x80070057
2009-06-28	15:05:02	 956	7bc	EEHndlr	FATAL: Parse failed with 0x80070057
 
2009-06-28	15:05:02	 956	7bc	PT	WARNING: Sync of Updates: 0x80070057
2009-06-28	15:05:02	 956	7bc	Agent	  * WARNING: Failed to synchronize, error = 0x80070057
2009-06-28	15:05:02	 956	7bc	Agent	  * WARNING: Exit code = 0x80070057
2009-06-28	15:05:02	 956	7bc	Agent	*********
2009-06-28	15:05:02	 956	7bc	Agent	**  END  **  Agent: Finding updates [CallerId = AutomaticUpdates]
2009-06-28	15:05:02	 956	7bc	Agent	*************
2009-06-28	15:05:02	 956	7bc	Agent	WARNING: WU client failed Searching for update with error 0x80070057
2009-06-28	15:05:02	 956	7bc	AU	>>##  RESUMED  ## AU: Search for updates [CallId = {75E13996-07B1-4924-AFC6-A73E04FE984F}]
2009-06-28	15:05:02	 956	7bc	AU	  # WARNING: Search callback failed, result = 0x80070057
2009-06-28	15:05:02	 956	7bc	AU	#########
2009-06-28	15:05:02	 956	7bc	AU	##  END  ##  AU: Search for updates [CallId = {75E13996-07B1-4924-AFC6-A73E04FE984F}]
2009-06-28	15:05:02	 956	7bc	AU	#############

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co_olAsked:
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Nat WallisTechnical Services ManagerCommented:
Unfortunately not a solution to your issue but is there any reason you are still running WSUS 2.0, and not WSUS 3.0 as I dont beleive WSUS 2.0 has been supported for some time. I also believe however that the migration can be a bit or a pain though.
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