WSUS server won't connect to another machine.

Greetings,

Well I have installed WSUS for the 1st time on

WinSVR 2008 R2
192.168.1.97 (Not on a domain)

Trying to connect to a server on the same subnet (192.168.1.0/24) but it won't connect to become a client, and I keep getting the IIS error message but the service is running on that box (192.168.1.98)

The purposed client box
WinSVR 2008 R2
192.168.1.98 (It is on a domain)

They can both: ping, tracert, RDP to each other.

I have removed their Windows firewalls as being active on both system and yet they fail on 80, 443, 8530, & 8531.

I think this is a GPO issue but I am not sure.

Any help would be appreciated I am at my wits end.