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WSUS 3.0 SP2 Fails On 2008 R2 x64

Hello - I have two servers both with distinctive install configurations.  However, on both servers, the exact same errors occur during installation.  I have gone through the Microsoft Step by Step guide and all roles/components are installed.  The first server is an upgrade from 2003 x64 and running as a Hyper-V server and running the Symantec SEP client.  The second server is a fresh install of 2008 x64 running as a physical server and is not running any antivirus software at the moment.

The installation gets to the end and when it tries to run the WSUS wizard, I get a box that says, "An unexpected error occurred, and this wizard must be closed. You may restart the WSUS Server Configuration Wizard from the Options page in the WSUS 3.0 console."  I can launch the WSUS console, but when I try to connect to the WSUS server, it says it cannot connect.  I check the WSUS event logs and see the following:

The DSS Authentication Web Service is not working.
The SimpleAuth Web Service is not working.
The Client Web Service is not working.
The Server Synchronization Web Service is not working.
The API Remoting Web Service is not working.
The Reporting Web Service is not working.
Self-update is not working.
The WSUS administration console has encountered an unexpected error. This may be a transient error; try restarting the administration console.
The WSUS administration console was unable to connect to the WSUS Server via the remote API.

I'm at a loss.  I've tried everything I can think of and tried everything I can find on the Internet but all attempts and suggestions fail.  I'm truly beginning to think it is an R2 issue but I can't find anything that supports that.
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James Haywood
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Everything prescribed by the following link:

http://technet.microsoft.com/en-us/library/dd939916%28WS.10%29.aspx
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Don
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Update:

An application that utilizes IIS was installed on this server prior (installed by a previous tech without my knowledge).  I have removed IIS and WSUS from the server.  I'll reboot tonight and try again reporting back the results.

@dstewartjr :: I'll have to review the links.  I'd seen the second link and checked the permissions, but had not tried the vbs yet.  I'll post back results perhaps later today.  The list is long and the day is getting shorter.
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Update:

On the server that was upgraded from 2008 to 2008 R2, I installed ALL the IIS components and the Application Server Role.  Then, installed Service Pack 3 for Windows Internal Database.  Once completed, WSUS wizard appeared after the installation AND the SEP mananagment console continues to function.

On the fresh install with the IIS application, I gave up when I broke the IIS application.  I have an old server that I have to take offline and WSUS was the last thing to remove.  I've installed WSUS on a different server and all is well.

Thanks for your time!
How in the world does the comment   "WSUS does work with R2." solve the issue here ???
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ASKER

your contribution didn't solve the the issue either but i gave you points too.