The fix of reinstalling WSUS worked in that WSUS is installed.
Strangely, it took nearly 7 hours to download the entire databsse of about 1.52G. When I installed sbs on this same box over a year ago, the initial download did not take that long.
However, while the stand-alone WSUS app seems to be running and finding updates properly, the SBS Console interface still reports: "An error occurred while refreshing information about the updates."
I'd rather use the "thinner" interface of the SBS console because I understand it.
For the record in the "Products and Classifications" tabs all items are selected.