Official Workaround Steps to get WSUS working on Dell OEM SBS2003 systems…..

To download WSUS installer to your computer

1. On the computer running Windows SBS, create a folder named WSUSFiles on your local hard disk.

2. Register to download the latest version of WSUSSetup.exe from the Microsoft Web site for Windows Server Update Services here 

3. Answer all required questions on the Windows Server Update Services Registration Wizard Web page and click Continue.

4. When you see the file download security warning prompt, select Save.

5. In the Save As dialog, browse to the WSUSFiles folder and then click Save.

To prepare the WSUS database

1. Extract the WSUS Setup files.

1. Click Start, click Run, and then type C:WSUSFilesWSUSSetup.exe /X, where C: is the letter of your local hard disk.

2. When prompted for a location to extract the files, select the WSUSFiles folder.

2. Type the following command, where C: is the letter of your local hard disk, and then press Enter:

   CD C:WSUSFileswmsde

3. Type the following command with consideration to the points listed below, and then press Enter:

   Sqlrun03.msi InstanceName=WSUS BlankSAPwd=1 Reboot=ReallySuppress DisableNetworkProtocols=1 DisableAgentStartup=1 DisableThrottle=1

Notes 

• If you want to specify the drive letter where the database instance will be located, you must add the DataDir=”Path” argument to the command line, where Path is the path to the target directory in the file system.

• The command line implies that your WSUS database will have a blank password. However, during the actual installation of WSUS, a randomly generated password is set. You do not need to specify a password.

• The command line is not case sensitive.