I setup a WSUS server however it does not see any client computers.
I have modified the local computer GPO but still nothing.
Any suggestions?

Welcome to the joys of WSUS, no doubt your first of many headaches to come...

Verify the following policies are set on clients:

• ‘Specify intranet Microsoft update service location’ to ‘Enabled’
• ‘Set the intranet update service for detecting updates’ to ‘http://your_WSUS_Server_IP_or_hostname:port’
• ‘Set the intranet statistics server’ to ‘http://your_WSUS_server_IP_or_hostname:port’

Confirm port number matches on server and clients. Confirm firewall isn't blocking communication for port used. You can force GP to update sooner via "gpupdate /force" at command prompt on client. You can force detection via "wuauclt /detectnow" at command prompt on client.

There are also specific case troubleshooting issues discussed in the WSUS deployment documentation.

Everything Scleros mentioned is true but you mentioned one thing that puzzles me... why are you using a local GPO and not a domain based Group Policy? There is a WSUS template designed specifically for properly setting up Group Policy and WSUS.

My "reason" for using a local GPO is I'm running workgroups because administration cannot fathom "why we need those expensive servers" for the PDC/BDC.

Scleros, my apologies. I did not mean to point the question at you as to why local policies are being used. I meant to direct the question at Dnandoo. He mentioned the use of a local GPO.

As to the lack of insight by your people with the purse strings, you have my deepest sympathies.

I knew that wasn't directed at me. I just offered it as a general insight into non-tech-centric organizations, nonprofits, and small businesses.

Thanks for the info guys, I was using local GPO in a test site however came to realize and understand that in order for this to work its easier done with a active directory GPO in a domain. Now I just have to get all that setup as well.

More fun with WSUS.
I just added my WSUS server to a test domain as a DNS server. However when I run WSUS I get the following message: the WSUS server failed to connect via the remote API.
Any thoughts on how to fix this?

I thought if I uninstalled WSUS 3.0SP1 and reinstalled that it might correct my prvious error message.
However when I try to run the exe to install it only allows me to unistall (which it is) and then just says it failed to unistall WSUS.
Any suggestions?

This is a failed connection attempt to the management console for WSUS. Verify that your IIS, SQL and Update Services are all running. Also, open the IIS Management Console and go to Web Service Extensions. Verify that Active Server Pages, ASP .NET versions 1.1 and 2.0 are Allowed. If this is a 64-bit Server OS installation, you can only enable the 64-bit or 32-bit version of .NET 2.0 but not both.

There is a SP1 version of .NET 2.0 available and is recommended. Also, there is a SP1 update for WSUS 3.0 that is recommended. Download details: Windows Server Update Services 3.0 SP1

Edited Post: I see you have posted again before I had a chance to read it.

I read about those settings and had verified them already.
I thought the uninstall and reinstall may work but any idea why when I run the executable I can only unistall the WSUS application and not install?

Thanks by the way.

Your previous installation did not properly complete. See if you can run the uninstall. It probably will fail but try anyway.

You will need to completely remove the installation manually from the registry, reboot and delete the installation files. I will be back at work next Monday and can search the registry on our WSUS server if you need a list of keys to remove.