try this. it worked for me on this issue.
http://www.wsus.info/forums/index.php?showtopic=6149
"Ryan" wrote:
> I'm getting these errors whenever I try to update one server from WSUS:
>
> 2005-08-01 13:22:08 1376 d1c AUClnt FATAL: Error: 0x80070005. wuauclt
> handler: failed to spawn COM server
> 2005-08-01 13:22:08 1144 4ac Handler FATAL: 0x80070005: ERROR: Remote update
> handler container process created (PID: 1376), but exited before signaling
> event
>
> The only KB article relating to error 0x80070005 and Windows Update talks
> about file and registry permissions... I went and checked and they are all
> okay. Has anyone seen this before?
>
> Thanks,
>