WSUS install problem – no network connection

Server 2008 R2 install of WSUS fails with

 

Windows server update services – Installation failed.
The update cannot be found. There may be a network connection issue

Error: Group Policy pointing towards a non-functioning WSUS server. Change the following setting to Disabled/Not Configured

Computer Configuration\Policies\Administrative Templates\Windows Components\Windows Updates\Allow signed updates from an intranet Microsoft update service location