"HKLM\Software\Microsoft\Windows NT\CurrentVersion\SvcHost"

Resettings perms fixed my probs.

Nice one XYVYX, I've been working for a couple of weeks on a server that had this issue and have tried just about everything Google could turn up. Two days ago, a laptop starts having the same issue. I use WSUS so I had no idea windows updates were failing when going to the site.