Fixed

I fixed my problem with Windows Update v5 and ISA Server 2000.
Here is how I did it.
On ISA Server 2000

- Disable “global� authentication for web proxy requests
1. Open the ISA Manglement MMC
2. Select View, then Advanced
3. Expand Servers and Arrays
4. R-click <ArrayName>, select Properties
5. Select Outgoing Web Requests
6. Uncheck Ask Unauthenticated users for identification
7. Click Apply,
8. When prompted, select Save the changes and restart the service(s)
9. Click OK

- Create a destination set for Windows Update domains
1. Expand <ArrayName> and PolicyElements
2. R-click Destination Sets, select New, then Set
3. Enter WindowsUpdate in the Name field, click Next
4. Click Add
5. Enter *.download.microsoft.com in the Domain field
6. Leave the Path field blank
7. Click OK
8. Repeat steps 4 through 7 for the following domains:
*.windowsupdate.com, *.windowsupdate.microsoft.com,
windowsupdate.microsoft.com
9. Click OK

- Create an anonymous Site and Content rule for Windows Update requests
1. Expand Access Policy
2. R-click Site and Content Rules, select New, then Rule
3. Enter Windows Update in the Name field, click Next
4. Select Allow, click Next
5. Select Allow access based on destination, click Next
6. In the Apply this rule to: drop-down list, select Specified Destination
Set
7. In the Name: drop-down list, select Windows Update
8. Click Next, then Finish

On Client PC's
- Make sure they are using the proxy server
1. Open Internet Explorer
2. Click the Tools menu and choose Internet Options
3. On the Connections tab, click the LAN Settings button
4. Check Automatically Detect Setttings
5. Check Use a proxy server for your LAN
6. Enter the name of the isa server in the address box.
7. Enter the port in the port box. 8080 is the defualt port.
8. Check Bypass prooxy server for local addresses
9. Click OK
10. Click Ok
11. Close Internet Explorer