SetCredentials for NEGOTIATE AUTH proxy failed with 0x800704dd

Hi,

I am seeing this error from MU site while trying to MUing the Windows
2000 SP4 Server with the latest AU client version.

2005-11-20 09:46:52 3556 eac DtaStor WARNING: Update Service: Failed to
update backup store
2005-11-20 09:46:52 3556 eac DnldMgr *********** DnldMgr: New download
job [UpdateId = {908122F7-60EF-46C2-A7F1-F5DA81D69859}.102]
***********
2005-11-20 09:46:52 3556 eac DnldMgr WARNING: SetCredentials for
NEGOTIATE AUTH proxy failed with 0x800704dd

2005-11-20 09:46:53 3556 eac DnldMgr FATAL:
DM:CAgentDownloadManager::DownloadUpdate: pDownloadJob->Init failed
with 0x8024401b.
2005-11-20 09:46:53 3556 eac DnldMgr WARNING: Got error (hr = 8024401b)
starting update 0 in call 16. Notifying call.
2005-11-20 09:46:53 3556 eac DnldMgr Error 0x8024401b occurred while
downloading update; notifying dependent calls.

We have an ISA 2000 SP2 with authentication enabled for outgoing web
requests and followed the KB articles to allow anonymous access for WU
sites and used PROXYCFG.exe to bypass and added WU sites to Trusted
Zone with no effect.

Any ideas?

Happy Patching,
Mohammed Athif Khaleel
MVP - SUS / WSUS
WSUS Blog: http://msmvps.com/Athif/

.