It appears that the updates are not being cached or the workstations are not picking them up from the server.
I am using sme 6.0.1-01, I did apply the plus, which is where i got Windows Cache Updates from.
I did apply proxy settings in IE, it appeared it made no difference.
I browsed the server for the location of the cached files, under /opt/windows/cache/store and there does seem to be plenty of cached windows updates there
Windows Cache Updates log file (part of)
[Mon Sep 5 23:33:01 2005] download.windowsupdate.com/v6/windowsupdate/redir/wuredir.cab exists
[Mon Sep 5 23:33:08 2005] couldn't mkdir update : Permission denied
is there extra configuration that needs to be applied
thanx, Russell