It works !!!!!
Please keep in mind, I had made some other changes prior to this resolution.
FIRST OFF - Remove URLscan, this was my first problem, it was blocking
everything (You can always reinstall it after you get it working). Secondly
make sure your GPO is being propagated and functioning, I changed the
install time in the GPO a couple of different times and then checked my
clients to see that the install time had changed on the client. There is a
utility called "nwsusutil.exe" that works fairly good for testing updates
from the client, unfortunately I don't recall the website but I got it from
a post in this newsgroup. Monitors the log files, Client = c:\winnt\windows
update.log, Server= c:\winnt\system32\logfiles\w3svc1\ex_date.log. - Good
Luck, and be patient
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