BITS Code forever in transient state

Hi I'm using BITS in an program to download certain files. The
download works on most machines (usually winxp), however when used in
one of our test machines (win2k.sp2) it isn't working. I have traced
the problem down to a never ending BG_JOB_STATE_TRANSIENT_ERROR state
of the download. Calling IBackgroundCopyJob::Resume doesn't seem to
continue the download.

Below is a pseudocode of the download loop

while( !m_isCancelled ) {
m_downloadJob->GetState( &jobState );

if( jobState == BG_JOB_STATE_TRANSFERRED ) {
// download is done get out of loop
break;
}
else if( jobState == BG_JOB_STATE_TRANSIENT_ERROR ) {
m_downloadJob->Resume()
}
// else handle other conditions

::Sleep( pollingLength );
// ... other code
}

What could be the problem in this scenario?

Thanks,
Edward