Question : Why can't machines connect with WSUS?

WSUS server is on a brand new server and freshly installed on Win2008 srvr std.

I have a GPO set to configure Auto Updates, however no machines are registering with the WSUS. When i run ClientDiag on machines I get an error. Different on some machines but always at the same point.

Machine group A:
Checking Machine State
        Checking for admin rights to run tool . . . . . . . . . PASS
        Automatic Updates Service is running. . . . . . . . . . PASS
        Background Intelligent Transfer Service is running. . . PASS
        Wuaueng.dll version 7.4.7600.226. . . . . . . . . . . . PASS
                This version is WSUS 2.0

Checking AU Settings
        AU Option is 3 : Notify Prior to Install. . . . . . . . PASS
                Option is from Policy settings

Checking Connection to WSUS/SUS Server
                WUServer = push
                WUStatusServer = http://push
        UseWuServer is enabled. . . . . . . . . . . . . . . . . PASS

GetAUSettingsRegistry(false, TEXT("SusServerVersion"), &dwSusVersion) failed wit
h hr=0x80070002

The system cannot find the file specified.

Machine Group B:
  Everythign passes the same and fails at the same point but I get a differnet message.

"VerifyWUServerURL<> failed with hr=0x80072ee6 The URL does not use a recognized protocol"


I am at a loss on why this happening

Answer : Why can't machines connect with WSUS?

From http://h18004.www1.hp.com/products/quickspecs/13249_na/13249_na.html

Quad-Core Intel® Xeon® E5500 processor series, up to 2.53GHz
Dual-Core Intel® Xeon® E5500 processor series, up to 1.86 GHz