Problems with Windows Update

A little background.  I work for a school district.  We have a domain with XP clients.  We use Active Directory and Group Policy.  I have a Windows 2003 WSUS server.  We had an outside company install POS terminals in our cafeteria.  They are Windows XP machines.  They are part of our domain.  

The machines do not seem to be getting my default domain policy or WSUS updates.  When I log in as the domain admin, or the local admin and go to I get a message that says "Network Policy settings prevent you from using this website to get updates for your computer.  ......Read more about steps you can take to resolve this problem (error number 0x8DDD0003) yourself.  When I do that, if I wait a few minutes, the yellow shield shows up down by the time.  I can click on that and install updates.

I have followed the links from the error message and get nowhere. It is almost like a local security policy was set, but I can't find it.  Shouldn't my domain policy that all of my other PCs get override this local policy?

We are not on good terms with the vendor that installed the machines, so I can't ask them for help.  I need to have these machines sync up with my WSUS server and stay updated.

Please help!
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When logged on as domain admin to these PC's open a cmd window and run "wuauclt /detectnow"
This will force them to seek out and apply the WSUS updates you have assigned to them.
Your default domain policy will apply to the computers with a little more force if you chose to "enforce" it for a little while. Also run "gpupdate /force" from a cmd prompt.
DonNetwork AdministratorCommented:
What are the results from command prompt of ??

Reg query HKLM\SOFTWARE\Policies\Microsoft\Windows\WindowsUpdate /s
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andysealsAuthor Commented:
Juno is the name of my WSUS server
DonNetwork AdministratorCommented:
That confirms that there is no problem with your WSUS settings.

Why are you trying to go to when your computers are configured to use WSUS ?

The setting "Disable and remove links to Windows Update" is the reason you are getting the error

If you want a client to query WSUS, then run the command

wuauclt /detectnow

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andysealsAuthor Commented:
I have to install software on these machines by Wednesday.  The software requires Service Pack 3.  I am trying to get them to SP3 so I can get this finished.  It was a band-aid fix to get the software installed.
SP3 will go on with WSUS. You need to ensure virus scan is disabled and the PC's do not go to sleep during the install. Also screensavers and funky mouse pointers have been known to cause SP3 to vomit.
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