Windows update fails, tried all tricks

I have deleted all cookies, temp files and ran the following batch files as recommended by other sites, and deleting the software distribution folder. This is a pdc and there is no group policy defintions defined as I can do updates on all other dcs and member servers fine. Has avg network version but that is no issue since it has no firewall module or service running. I also delted the windowsupdate registry key as advised and remerged the same key from a member server that works, its attached. Hoping for some luck on this. The windows update page errors with this Error number: 0x8024D007

batch file 1
REGSVR32 WUPS2.DLL /S
REGSVR32 WUPS.DLL /S
REGSVR32 WUAUENG.DLL /S
REGSVR32 WUAPI.DLL /S
REGSVR32 MUCLTUI.DLL /S
REGSVR32 WUCLTUI.DLL /S
REGSVR32 WUWEB.DLL /S
REGSVR32 MUWEB.DLL /S
REGSVR32 QMGR.DLL /S
REGSVR32 QMGRPRXY.DLL /S
batch file 2
net stop wuauserv
cd %systemroot%\SoftwareDistribution
ren softwareDownload softwareDownload.old
net start wuauserv
net stop bits
net start bits
net stop cryptsvc
cd %systemroot%\system32
ren catroot2 catroot2old
net start cryptsvc

Last part of update log
2010-01-04      16:07:30:333      1712      10c4      Misc      Registering binary: C:\WINDOWS\system32\regsvr32.exe  /s "C:\WINDOWS\system32\wuaueng.dll"
2010-01-04      16:07:30:942      4352      1104      Misc      ===========  Logging initialized (build: 7.4.7600.226, tz: -0800)  ===========
2010-01-04      16:07:30:942      4352      1104      Misc        = Process: C:\WINDOWS\system32\regsvr32.exe
2010-01-04      16:07:30:942      4352      1104      Misc        = Module: C:\WINDOWS\system32\wuaueng.dll
2010-01-04      16:07:30:942      4352      1104      Service      FATAL: WU client fail to create WU service with error 0x80070005
2010-01-04      16:07:31:052      1712      10c4      Misc      FATAL: Self registration of C:\WINDOWS\system32\wuaueng.dll failed, error = 0x8024D007
2010-01-04      16:07:31:052      1712      10c4      Setup      WARNING: Completed registration operations for section wuaueng_WebSetup: status 0x8024d007
2010-01-04      16:07:31:052      1712      10c4      Setup      WARNING: Setup failed while processing registry operations, error = 0x8024D007. Rolling back changes.
2010-01-04      16:07:31:052      1712      10c4      Setup      Rollback: Successfully copied C:\WINDOWS\system32\cdm.dll.wusetup.14681984.bak back to C:\WINDOWS\system32\cdm.dll
2010-01-04      16:07:31:052      1712      10c4      Setup      Rollback: Successfully copied C:\WINDOWS\system32\wuauclt.exe.wusetup.14682375.bak back to C:\WINDOWS\system32\wuauclt.exe
2010-01-04      16:07:31:067      1712      10c4      Setup      Rollback: Successfully copied C:\WINDOWS\system32\wuaucpl.cpl.wusetup.14682484.bak back to C:\WINDOWS\system32\wuaucpl.cpl
2010-01-04      16:07:31:067      1712      10c4      Setup      Rollback: Successfully copied C:\WINDOWS\system32\wuaucpl.cpl.mui.wusetup.14682484.bak back to C:\WINDOWS\system32\wuaucpl.cpl.mui
2010-01-04      16:07:31:067      1712      10c4      Setup      Rollback: Successfully copied C:\WINDOWS\system32\wuaueng.dll.wusetup.14682656.bak back to C:\WINDOWS\system32\wuaueng.dll
2010-01-04      16:07:31:067      1712      10c4      Setup      Rollback: Successfully copied C:\WINDOWS\system32\wuaueng.dll.mui.wusetup.14682671.bak back to C:\WINDOWS\system32\wuaueng.dll.mui
2010-01-04      16:07:31:067      1712      10c4      Setup      Rollback: Successfully copied C:\WINDOWS\system32\wucltui.dll.wusetup.14682781.bak back to C:\WINDOWS\system32\wucltui.dll
2010-01-04      16:07:31:083      1712      10c4      Setup      Rollback: Successfully copied C:\WINDOWS\INF\wuau.adm.wusetup.14682812.bak back to C:\WINDOWS\INF\wuau.adm
2010-01-04      16:07:31:083      1712      10c4      Setup      Rollback: Successfully copied C:\WINDOWS\system32\wucltui.dll.mui.wusetup.14682828.bak back to C:\WINDOWS\system32\wucltui.dll.mui
2010-01-04      16:07:31:083      1712      10c4      Setup      Rollback: Successfully copied C:\WINDOWS\HELP\wuauhelp.chm.wusetup.14682843.bak back to C:\WINDOWS\HELP\wuauhelp.chm
2010-01-04      16:07:31:130       844      1110      Misc      ===========  Logging initialized (build: 7.2.6001.788, tz: -0800)  ===========
2010-01-04      16:07:31:130       844      1110      Misc        = Process: C:\WINDOWS\System32\svchost.exe
2010-01-04      16:07:31:130       844      1110      Misc        = Module: C:\WINDOWS\system32\wuaueng.dll
2010-01-04      16:07:31:130       844      1110      Service      *************
2010-01-04      16:07:31:130       844      1110      Service      ** START **  Service: Service startup
2010-01-04      16:07:31:130       844      1110      Service      *********
2010-01-04      16:07:31:145       844      1110      Agent        * WU client version 7.2.6001.788
2010-01-04      16:07:31:145       844      1110      Agent        * Base directory: C:\WINDOWS\SoftwareDistribution
2010-01-04      16:07:31:145       844      1110      Agent        * Access type: No proxy
2010-01-04      16:07:31:145       844      1110      Agent        * Network state: Connected
2010-01-04      16:07:34:083      1712      10c4      Setup        * WARNING: Exit code = 0x8024D007
2010-01-04      16:07:34:083      1712      10c4      Setup      *********
2010-01-04      16:07:34:083      1712      10c4      Setup      **  END  **  Setup: Installing client binaries
2010-01-04      16:07:34:083      1712      10c4      Setup      *************
2010-01-04      16:07:34:083      1712      10c4      Setup      FATAL: InstallUpdatedBinaries failed with error 0x8024d007
2010-01-04      16:07:34:083      1712      10c4      WUWeb      FATAL: InstallUpdatedBinaries failed with error:0x8024d007
2010-01-04      16:07:34:083      1712      10c4      WUWeb      FATAL: UpdateClientWorker failed: error 0x8024d007





windowsupdate.reg