Server 2008 "Check for Updates" Grayed Out

I have a problem that I have been unable to resolve in spite of considerable research. We just created several new Windows 2008 Servers and added them to our domain. We have WSUS installed and our servers are set to obtain their updates from our WSUS server rather than from the Microsoft site through group policy settings. Group policy for the 2008 servers is set to automatically download updates but allow the logged on administrator to choose when and which ones to install. The updates automatically download to the servers and the administrator is notified that updates are available, however, Windows Update the Check for Updates link is grayed out and he is notified that "Some settings are managed by your system administrator." (Which is true because we set it through policy) The logged on administrator has no way of picking and choosing which updates to install. The option to Install Updates and Shut Down is displayed on logon though so we are able to apply updates that way. This is not, however, the way we want to install updates on our 2008 servers. We want the administrator to be able to see and select the updates he wishes to install. I have tried playing around with every policy setting I can think of and have come up blank. What has changed from 2003 to 2008 that would cause this and how do I resolve the issue?

I have found references to the User Configuration\Policies\Administrative Templates\Start Menu and Taskbar\Remove links and access to Windows Update policy in Group Policy and have made sure that that setting is disabled for the Windows 2008 Servers, however, it makes no difference.

Our Windows 2003 Servers work fine with the existing policy and no policy changes were made before installing the 2008 servers.