AU client on Terminal Server - all users get message, both buttons are grey

Hi !

We experience a Windows Update/AU problem on a Terminal Server (configured
to use an internal wsus server)
All the settings seems correct, among others the RebootRelaunchTimeout is
set to 0 and
the ElevatedNonAdmins are also set to 0. The AUOptions is set to 4.
As far as I understand, this should download and install updates set to
"install" automatically and
inform ONLY ADMINISTRATORS logging on to the terminal-server.
But, all of our users keep getting the popup message regarding restart, and
both the "Restart Now"
and "Restart Later" buttens are disabled. The only way of getting rid of
this is to stop the "Automatic Update" service,
this "kills" the windows in every session.

The wuaueng.dll file is in version 5.8.0.2468 which seems farly recent.

So, does anyone have any idea on how to avoid the AU service in
presenting/informing ordinary users of reboot?
I've soon google'd the entire net in search of answers, but can't find much
information about using AU client
on terminal servers (w2k ts that is)

Thanks in advance!
brdgs,
Stig A Sunde