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Deployed updates not being downloaded by clients - Error = 0x87d00692 is in the WUAHandler.log

Update:10-11Source: network consolidation
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Hi,
I've been setting up SCCM 2012 and mostly following the instructions and guides at
http://www.windows-noob.com/forums/index.php?/topic/4045-system-center-2012-configuration-manager-guides/.  We used to use a WSUS server to deploy our updates but now I've setup SCCM 2012 and setup the SUP role (and WSUS) on the SCCM server.
I belive I've gotten most things properly configured.  The SCCM Software Center application is successfully installed on all my clients and I'm able to setup software update groups and I just tried to deploy the most recent updates from this Tuesday
patch release.  I can see the packages downloaded on my SCCM server in the folder that I specified but the updates don't seem to going down to my clients.  I've looked at the WUAHandler.log on one of my clients and it keeps repeating the following
lines:
<![LOG[Group policy settings were overwritten by a higher authority (Domain Controller) to: Server
http://topanga:8530 and Policy ENABLED]LOG]!><time="15:54:01.474+420" date="08-16-2012" component="WUAHandler" context="" type="3" thread="8680" file="sourcemanager.cpp:1000">
<![LOG[Failed to Add Update Source for WUAgent of type (2) and id ({382D7556-03CE-4803-8A55-13D9A3E061CB}). Error = 0x87d00692.]LOG]!><time="15:54:01.474+420" date="08-16-2012" component="WUAHandler" context="" type="3" thread="8680" file="cwuahandler.cpp:2322">
<![LOG[Its a WSUS Update Source type ({382D7556-03CE-4803-8A55-13D9A3E061CB}), adding it.]LOG]!><time="15:54:01.614+420" date="08-16-2012" component="WUAHandler" context="" type="1" thread="4840" file="sourcemanager.cpp:1222">
<![LOG[Enabling WUA Managed server policy to use server:
<time="15:54:06.772+420">http://topanga.kcicorp.com:8530]LOG]!><time="15:54:06.772+420" date="08-16-2012" component="WUAHandler" context="" type="1" thread="5308" file="sourcemanager.cpp:938">
<![LOG[Waiting for 2 mins for Group Policy to notify of WUA policy change...]LOG]!><time="15:54:06.812+420" date="08-16-2012" component="WUAHandler" context="" type="1" thread="5308" file="sourcemanager.cpp:944">
<![LOG[Group policy settings were overwritten by a higher authority (Domain Controller) to: Server
http://topanga:8530 and Policy ENABLED]LOG]!><time="15:54:09.242+420" date="08-16-2012" component="WUAHandler" context="" type="3" thread="5308" file="sourcemanager.cpp:1000">
<![LOG[Failed to Add Update Source for WUAgent of type (2) a[Waiting for 2 mins for Group Policy to notify of WUA policy change...]LOG]!><time="15:54:01.848+420" date="08-16-2012" component="WUAHandler" context="" type="1" thread="4840" file="sourcemanager.cpp:944">
<![LOG[Group policy settings were overwritten by a higher authority (Domain Controller) to: Server
http://topanga:8530 and Policy ENABLED]LOG]!><time="15:54:06.502+420" date="08-16-2012" component="WUAHandler" context="" type="3" thread="4840" file="sourcemanager.cpp:1000">
<![LOG[Failed to Add Update Source for WUAgent of type (2) and id ({382D7556-03CE-4803-8A55-13D9A3E061CB}). Error = 0x87d00692.]LOG]!><time="15:54:06.502+420" date="08-16-2012" component="WUAHandler" context="" type="3" thread="4840" file="cwuahandler.cpp:2322">
<![LOG[Its a WSUS Update Source type ({382D7556-03CE-4803-8A55-13D9A3E061CB}), adding it.]LOG]!><time="15:54:06.762+420" date="08-16-2012" component="WUAHandler" context="" type="1" thread="5308" file="sourcemanager.cpp:1222">
<![LOG[Enabling WUA Managed server policynd id ({382D7556-03CE-4803-8A55-13D9A3E061CB}). Error = 0x87d00692.]LOG]!><time="15:54:09.242+420" date="08-16-2012" component="WUAHandler" context="" type="3" thread="5308" file="cwuahandler.cpp:2322">
Can someone give me some hints as to what is happening? 
Thanks in advance,
Nick

The Best Answer

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I was troubleshooting this issue earlier today and pulling my hair out until I came across this blog post: http://www.bibble-it.com/2009/07/24/sccm-update-scan-error . Like many others, I'm using WSUS to also push the new SCCM client, so the GPO for the
WSUS server needs to be in place. The issue you're running into here is that your server names don't match up EXACTLY.
<![LOG[Enabling WUA Managed server policy to use server: <time="15:54:06.772+420">http://topanga.kcicorp.com:8530]LOG]!><time="15:54:06.772+420" date="08-16-2012" component="WUAHandler" context="" type="1" thread="5308" file="sourcemanager.cpp:938">
<![LOG[Waiting for 2 mins for Group Policy to notify of WUA policy change...]LOG]!><time="15:54:06.812+420" date="08-16-2012" component="WUAHandler" context="" type="1" thread="5308" file="sourcemanager.cpp:944">
<![LOG[Group policy settings were overwritten by a higher authority (Domain Controller) to: Server http://topanga:8530 and Policy ENABLED]LOG]!><time="15:54:09.242+420" date="08-16-2012" component="WUAHandler" context="" type="3" thread="5308" file="sourcemanager.cpp:1000">
You need to change your group policy to use the FQDN. In your case it would be http://topanga.kcicorp.com:8530 instead of http://topanga:8530