Automatic Updates - Unable to detect the need for SP2

I cannot get the new automatic update control to discover anything to
download. It has only once detected SP2. It first discovered BITS 2.0,
which it successfully downloaded, then it detected SP2 it downloaded
15Mbytes of data and since then nothing.

At first the automatic updates icon would show and it stayed at 0%. It
would appear even when I wasnt connected to the internet. During this
time I was trying to get a series of rules for SVCHost so automatic
updates was not always able to talk to the server.

Now the icon has disappeared it seems never to be seen again.

The WindowsUpdate.log always ends with "No pending client directive,
bailing out".

I have already tried stopping the automatic updates services and deleting
datastore.edb, and restarting it. This does not help.

I have also re-regsvr32 each item, as well as removing them. It
redownloads them successfully but still does not discover SP2, and yes I
have checked winver.exe and it is still definitely still SP1

Where does the automatic updates service look to find out what it should
download?

2004-08-28 16:55:47+0100 1176 49c Service received
SERVICE_CONTROL_SHUTDOWN control
2004-08-28 16:55:47+0100 1176 6c Exiting Service Main
2004-08-28 16:55:47+0100 1176 6c ISusInternal API
CClientCallRecorder:isconnectCall succeeds
2004-08-28 16:55:47+0100 1176 6c DM: SetNotifyInterface failed
with 0x80080008.
2004-08-28 16:57:03+0100 1196 558 Service Main starts
2004-08-28 16:57:03+0100 1196 558 Using BatchFlushAge = 33111.
2004-08-28 16:57:03+0100 1196 558 Using SamplingValue = 493.
2004-08-28 16:57:03+0100 1196 558 Successfully loaded event
namespace dictionary.
2004-08-28 16:57:03+0100 1196 558 Successfully loaded client
event namespace descriptor.
2004-08-28 16:57:03+0100 1196 558 Successfully initialized local
event logger. Events will be logged at C:\WINDOWS\SoftwareDistribution
\ReportingEvents.log.
2004-08-28 16:57:04+0100 1196 558 Successfully initialized NT
event logger.
2004-08-28 16:57:04+0100 1196 558 Successfully initialized event
uploader 0.
2004-08-28 16:57:04+0100 1196 558 Reopened existing event cache
file at C:\WINDOWS\SoftwareDistribution\EventCache\{44569C 6F-B3AD-4225-
9727-7F0F7DE1532B}.bin for writing.
2004-08-28 16:57:04+0100 1196 558 Successfully initialized event
uploader 1.
2004-08-28 16:57:04+0100 1196 558 WU client with version
5.4.3790.2182 successfully initialized
2004-08-28 16:57:04+0100 1196 558 Service status is now
SERVICE_RUNNING
2004-08-28 16:57:14+0100 1196 4b0 Service received connect
notification
2004-08-28 16:57:49+0100 1196 558 start delayed initialization
of WU client
2004-08-28 16:57:49+0100 2808 afc Trying to make out of proc
datastore active
2004-08-28 16:57:50+0100 2808 afc Out of proc datastore is now
active
2004-08-28 16:57:50+0100 1196 558 WU client successfully loaded
ongoing download call {150C3787-E442-47B0-9EE7-85148444B1F1} from
datastore
2004-08-28 16:57:50+0100 1196 558 WU client successfully loaded
ongoing download call {89D991B9-3A8E-4D55-9A54-F052CA06A1D5} from
datastore
2004-08-28 16:57:50+0100 1196 558 WU client succeeded to load 2
persisted Download Calls
2004-08-28 16:57:50+0100 1196 558 Client Call Recorder finished
delayed initialization
2004-08-28 16:57:50+0100 1196 558 AU finished delayed
initialization
2004-08-28 16:57:50+0100 1196 55c WU client calls back to
download call {89D991B9-3A8E-4D55-9A54-F052CA06A1D5} with code Call
progress and error 0
2004-08-28 16:58:04+0100 1196 558 AU received event of 1
2004-08-28 16:58:04+0100 1196 558 No pending client directive,
bailing out