WSUS updates failing on a test machine - Access Denied 0x80070005

Hi all,

We are introducing a 2012R2 WSUS server on our infrastructure and using a few test machines to push the updates.

My machine specifically fails to install the updates every night and throws an error code which seems to be "Access Denied" - 0x80070005:

Extract from WindowsUpdate.log (although all KBs fail with same code):

REPORT EVENT: {360B141D-8558-4475-90E3-E85FA4654F75}2014-02-18 08:40:04:483-00001195101{6F04F6A8-3A50-4B98-A9FC-8856F32E1100} 20180070005 AutomaticUpdatesFailureContent InstallInstallation Failure: Windows failed to install the following update with error 0x80070005: Security Update for Windows 7 for x64-based Systems (KB2887069).

I was wondering whether anyone has come across this before?

Comments are much appreciated.