[nmc]

Still no go. Here's the latest log:
2008-01-25 15:52:38:396 1220 1dd4 Misc Validating signature for C:\Windows\SoftwareDistribution\SelfUpdate\wsus3se tup.cab:
2008-01-25 15:52:38:404 1220 1dd4 Misc Microsoft signed: Yes
2008-01-25 15:52:38:428 1220 1dd4 Setup Determining whether a new setup handler needs to be downloaded
2008-01-25 15:52:38:428 1220 1dd4 Setup SelfUpdate handler is not found. It will be downloaded
2008-01-25 15:52:38:429 1220 1dd4 Setup Evaluating applicability of setup package "WUClient-SelfUpdate-ActiveX~31bf3856ad364e35~x86~~7.0.6000.381"
2008-01-25 15:52:38:560 1220 1dd4 Handler FATAL: UH: 0x80070057: EvaluateApplicability failed in CCbs::EvaluateApplicability
2008-01-25 15:52:38:560 1220 1dd4 Setup WARNING: CBS EvaluateApplicability returned error, error = 0x80070057
2008-01-25 15:52:38:560 1220 1dd4 Setup FATAL: Applicability evaluation for setup package "WUClient-SelfUpdate-ActiveX~31bf3856ad364e35~x86~~7.0.6000.381" failed, error = 0x80070057
2008-01-25 15:52:38:560 1220 1dd4 Setup FATAL: SelfUpdate check failed, err = 0x80070057
2008-01-25 15:52:38:560 1220 1dd4 Agent * WARNING: Skipping scan, self-update check returned 0x80070057
2008-01-25 15:52:38:561 1220 1dd4 Agent * WARNING: Exit code = 0x80070057
2008-01-25 15:52:38:561 1220 1dd4 Agent *********
2008-01-25 15:52:38:561 1220 1dd4 Agent ** END ** Agent: Finding updates [CallerId = AutomaticUpdates]
2008-01-25 15:52:38:561 1220 1dd4 Agent *************
2008-01-25 15:52:38:561 1220 1dd4 Agent WARNING: WU client failed Searching for update with error 0x80070057
2008-01-25 15:52:38:562 1220 1f94 AU >>## RESUMED ## AU: Search for updates [CallId = {DE5AA1AA-06E1-4622-A390-5D93090BD0FD}]
2008-01-25 15:52:38:562 1220 1f94 AU # WARNING: Search callback failed, result = 0x80070057
2008-01-25 15:52:38:562 1220 1f94 AU # WARNING: Failed to find updates with error code 80070057
2008-01-25 15:52:38:562 1220 1f94 AU #########
2008-01-25 15:52:38:562 1220 1f94 AU ## END ## AU: Search for updates [CallId = {DE5AA1AA-06E1-4622-A390-5D93090BD0FD}]
2008-01-25 15:52:38:562 1220 1f94 AU #############
2008-01-25 15:52:38:562 1220 1f94 AU AU setting next detection timeout to 2008-01-25 19:52:38
2008-01-25 15:52:38:562 1220 1f94 AU Setting AU scheduled install time to 2008-01-26 08:00:00
2008-01-25 15:52:43:560 1220 1dd4 Report REPORT EVENT: {53384B25-63B4-462E-98BD-B42C68BD9D40} 2008-01-25 15:52:38:560+0100 1 148 101 {61CA813A-7585-442E-A66B-B0D15CE6BDC0} 1 80070057 SelfUpdate Failure Software Synchronization Windows Update Client failed to detect with error 0x80070057.