We have a WSUS server sitting on a 2003 R2 server.
I am only modifying the local group policy on client machines. All windows 7 machines are CLEARLY updating from my WSUS server. I know this because of the speed of which is download updates, and in Win7 it clearly says it is using admin settings to get updates (as well as a link to go to MS site for updates).
My problem is any XP client. I make the same changes in the local group policy ("configure automatic updates, Specify Intranet Microsoft update service location, and AU detection freq". When i run windows update from the XP machine, the downloads take FOREVER...no way can it be grabbing updates from m WSUS server. Also, as a test i put in a bad WSUS server name in the GP, and downloads still took the same about of time.
The XP client is visible in the WSUS admin console, but took hour before it appeared. Win7 appeared instant.