SBS 2003 endless loop on "Checking for latest MU software..."

Hi all,

Windows SBS 2003 that I had to reinstall (repair) today. Reinstallation went
fine, however, brought me back to IE 6.

When I try Microsoft (Windows) Updates, the site goes into "Checking for the
latest version of Windows Updating software..." and a yellow pop-up bar for
AxtiveX appears. I install ActiveX. The page briefly reloads and goes AGAIN
into "Checking for the latest version of Windows Updating software..." with
ActiveX warning, and on and on and on.

It is not a firewall issue. Windows firewall is OFF, and the only firewall
we have is our router with which everything worked just yesterday. Services
"Automatic updates", ""BITS" are started.

I found that plenty of people have this problem on Google, but none of the
suggestions workde for me. I have tried:

1) Manually downloading MU software from
http://v4.windowsupdate.microsoft.co...code/iuctl.cab
and installing it

2) Manually regsvr32-ing all DLLs to do with updates from DOS prompt

3) Turning off pop-up blocker

4) Verified that in IE Manage Add-ons, MUWebControll and WUWebControll
classes are enabled

5) Removed MUWebControll and WUWebControll objects from
C:\Windows\Downloaded Program Files, hoping it would reinstall them, after
clearing all Internet History and temporary files


All suggestions appreciated,
Vlad