WSUS SBS 2008 Standard FE

I have a customer that has an error going on SBS2008:

The WSUS administration console has encountered an unexpected error. This may be a transient error; try restarting the administration console. If this error persists,
Try removing the persisted preferences for the console by deleting the wsus file under %appdata%\Microsoft\MMC\.
System.NullReferenceException -- Object reference not set to an instance of an object.
Source
Microsoft.UpdateServices.UI.SnapIn
Stack Trace:
   at Microsoft.UpdateServices.UI.SnapIn.Pages.ServerSummaryPage.backgroundWorker_RunWorkerCompleted(Object sender, RunWorkerCompletedEventArgs e)


It looks like the workstations are pointing to WSUS but not updating.  When this server was put in there was no fault tolerance built into the server.  Two disks came with the server same size but not mirrored.  One is holding the OS and the Data, and the other one is holding WSUS updates.  The customer is looking at options.  Is it possible to uninstall WSUS from the server and deactivate the WSUS policy.  Freeing up the disk that holds WSUS and then doing a mirror.  

Thanks,

Rick