0x8024401F error

Have looked through all these threads trying to find a fix my 0x8024401f errors.

Windows Server 2012 with Update Services 6.2.9200.16384 installed

Windows 7 64 bit clients getting WSUS info via GPO (GPO is working fine)

Windows 7 clients show me available updates but fail with 0x8024401f error.

Have checked IIS permissions, all seems in order.

Log file snippet attached:

2013-06-0315:42:14:506106410b0AUSuccessfully wrote event for AU health state:0
2013-06-0315:42:14:506106410b0AUCurrently showing Progress UX client - so not launching any other client
2013-06-0315:42:14:522106410b0AUSuccessfully wrote event for AU health state:0
2013-06-0315:42:14:568106410b0AU>>##  RESUMED  ## AU: Download update [UpdateId = {407B2BF6-09F1-45A5-9BA7-F0C89062D206}]
2013-06-0315:42:14:568106410b0AU # WARNING: Download failed, error = 0x8024401F
2013-06-0315:42:14:568106410b0AU#########
2013-06-0315:42:14:568106410b0AU##  END  ##  AU: Download updates
2013-06-0315:42:14:568106410b0AU#############
2013-06-0315:42:14:568106410b0AUSuccessfully wrote event for AU health state:0
2013-06-0315:42:14:568106410b0AUCurrently showing Progress UX client - so not launching any other client
2013-06-0315:42:14:584106410b0AUSuccessfully wrote event for AU health state:0
2013-06-0315:42:14:6001064f04AUGetting featured update notifications.  fIncludeDismissed = true
2013-06-0315:42:14:6001064f04AUNo featured updates available.
2013-06-0315:42:14:8181064f04AUBeginInteractiveInstall invoked for Install
2013-06-0315:42:14:8181064f04AUAuto-approved 0 update(s) for install (for Ux), installType=0
2013-06-0315:42:14:8181064f04AUWARNING: BeginInteractiveInstall failed, error = 0x8024000C
2013-06-0315:42:14:81845762e8CltUIFATAL: BeginInteractiveInstall for install returned code 8024000C
2013-06-0315:42:15:05345762e8CltUIWARNING: AU directive Interactive Progress is exiting due to error 8024000C
2013-06-0315:42:15:06810641338AUAU received handle event
2013-06-0315:42:15:06810641338AUUpdateDownloadProperties: 0 download(s) are still in progress.
2013-06-0315:42:15:06810641338AUTriggering Offline detection (non-interactive)
2013-06-0315:42:15:06810641338AUAU setting pending client directive to 'Install Complete Ux'
2013-06-0315:42:15:06810641338AUWARNING: Pending directive, 'Install Complete Ux', is not applicable
2013-06-0315:42:15:19310641338AUSuccessfully wrote event for AU health state:0
2013-06-0315:42:15:19310641338AU#############
2013-06-0315:42:15:19310641338AU## START ##  AU: Search for updates
2013-06-0315:42:15:19310641338AU#########
2013-06-0315:42:15:1931064ef8ReportREPORT EVENT: {F0EAE032-FEC4-4AF6-B13D-0C6D99C6CE9F}2013-06-03 15:42:12:803-03001161101{32964BF2-1C68-4D57-AE68-F7BC038CB108} 2028024401f AutomaticUpdatesWuAppFailureContent DownloadError: Download failed.
2013-06-0315:42:15:1931064ef8ReportREPORT EVENT: {CD0D8A0E-4E0E-4F05-A101-311280AD415F}2013-06-03 15:42:13:365-03001161101{407B2BF6-09F1-45A5-9BA7-F0C89062D206} 2008024401f AutomaticUpdatesWuAppFailureContent DownloadError: Download failed.
2013-06-0315:42:15:19310641338AU<<## SUBMITTED ## AU: Search for updates [CallId = {B823CC5D-DD64-4E2F-93B6-446EFCF5D889}]
2013-06-0315:42:15:2091064ef8ReportCWERReporter::HandleEvents - WER report upload completed with status 0x8
2013-06-0315:42:15:2091064ef8ReportWER Report sent: 7.6.7600.256 0x8024401f 32964BF2-1C68-4D57-AE68-F7BC038CB108 Download 101 Managed
2013-06-0315:42:15:2401064ef8ReportCWERReporter::HandleEvents - WER report upload completed with status 0x8
2013-06-0315:42:15:2401064ef8ReportWER Report sent: 7.6.7600.256 0x8024401f 407B2BF6-09F1-45A5-9BA7-F0C89062D206 Download 101 Managed
2013-06-0315:42:15:2401064ef8ReportCWERReporter finishing event handling. (00000000)
2013-06-0315:42:15:2401064ef8Agent*************
2013-06-0315:42:15:2401064ef8Agent** START **  Agent: Finding updates [CallerId = AutomaticUpdates]
2013-06-0315:42:15:2401064ef8Agent*********
2013-06-0315:42:15:2401064ef8Agent * Online = No; Ignore download priority = No
2013-06-0315:42:15:2401064ef8Agent * Criteria = "IsInstalled=0 and DeploymentAction='Installation' or IsPresent=1 and DeploymentAction='Uninstallation' or IsInstalled=1 and DeploymentAction='Installation' and RebootRequired=1 or IsInstalled=0 and DeploymentAction='Uninstallation' and RebootRequired=1"
2013-06-0315:42:15:2401064ef8Agent * ServiceID = {3DA21691-E39D-4DA6-8A4B-B43877BCB1B7} Managed
2013-06-0315:42:15:2401064ef8Agent * Search Scope = {Machine}
2013-06-0315:42:32:1321064ef8AgentWARNING: Failed to evaluate Installed rule, updateId = {189A8F50-0C3A-4FDF-8BC2-BC23A3EB11FB}.101, hr = 8024