Workstations not getting Automatic Windows Updates

Here is my setup: SBS2003 is domain controller. We use ISA. We have
a SonicWall Firewall. The domain controller is also the Proxy Server.
All workstations are XP SP2.

Any station can manually go to the windows update site and download all
the updates...no problem there. Problem is that automatic updates are
failing. with this event:
~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Event Type: Error
Event Source: Windows Update Agent
Event Category: Software Sync
Event ID: 16
Date: 8/21/2006
Time: 7:53:22 AM
User: N/A
Computer: VINCENT
Description:
Unable to Connect: Windows is unable to connect to the automatic
updates service and therefore cannot download and install updates
according to the set schedule. Windows will continue to try to
establish a connection.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Some observations:
The DC is getting updates fine. This makes me think that it is not the
firewall/proxy because it does not bypass the proxy/firewall.
I can ping update.microsoft.com, but not other 2 sites (see below).
After looking at the WindowsUpdate.log file, I found this line:
2006-08-25 08:22:26 1088 968 DnldMgr WARNING: Download job failed
because of proxy auth or server auth.


Here is what I have tried:
I have added Update.microsoft.com; Windowsupdate.microsoft.com; and
Download.windowsupdate.com to firewall exception list. Didn't work.
I have added the same sites to ISA policy destination set. Didnt work
Using the "proxycfg" command, I inputed "ProxyServerName:8080" as the
proxy server

We have about 55 workstations. I have been reading a bit about WSUS, I
think it may be overkill and eat too resource from the server.
I really think this has something to do with ISA, but I am still fairly
new to ISA and could use some insight.

My guess is some sort of authentication issue within ISA. Any ideas
from you gurus out there? Thanks so much ahead of time.
One more thing....is there a command to push an automatic update? This
is had to troubleshoot because it takes so long to wait for the next
update. I found the reg key "Next Detection Time" but that is not
working.

.

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