It turns out that ( after a few re-starts) one of the following suggestions actually works:
0x800A0046 error code
To resolve this error, use one of the following methods:
Method 1: Remove the user account that is experiencing difficulty from the Guests or Limited account groups
1. Click Start, click Run, type control admintools, and then click OK.
2. Click Computer Management.
3. Expand Local Users and Groups.
4. Select Users.
5. Open the account that is used to access Windows Update or Microsoft Update.
6. Click the Member Of tab.
7. Select the user account that you want to remove, and then click Remove.
Method 2: Set the Security Descriptor
1. Click Start, click Run, type cmd, and then click OK.
2. Type sc sdset wuauserv D:(A;;CCLCSWRPWPDTLOCRRC;;;SY)(A;;CCDCLCSWRPWPDTLOCRSDRCWDWO;;;BA)(A;;CCLCSWLOCRRC;;;AU)(A;;CCLCSWRPWPDTLOCRRC;;;PU), and then press ENTER.
You will receive a "Success" message.
Note The Sc.exe tool is not available in a default Windows 2000 installation. The Sc.exe tool can be found from the Microsoft Windows 2000 Server Resource Kit.
3. Type Exit to close the command prompt.
4. Try Windows Update or Microsoft Update again.
Method 3: Add the Local Administrator and Service accounts to the Impersonate a client after authentication policy
1. Click Start, click Run, type secpol.msc, and then press ENTER.
2. Expand Local Policies.
3. Click User Rights Assignment.
4. Double-click to open the Impersonate a client after authentication policy
5. On the Local Security Settings tab, click Add User or Group, and then add the Administrator and Service to the list of Users and Groups.
6. Click OK, and then restart the computer.
Method 4: Configure the Remote Procedure Call (RPC) service to log on as a Local System account
1. Click Start, click Run, type services.msc, and then click OK.
2. Locate and right-click the Remote Procedure Call (RPC) service, and then click Properties.
3. On the Log On tab, click Local System account, click Apply, and then click OK.
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