WSUS Clients unable to update from Server 2008 R2 fresh WSUS install.

i inhereted wsus setup on server 2003 box have had nothing problems with, decided instead of chasing down issues on install fresh install on newer server.  i started server 2008 r2 install.  i ran updates on server , installed wsus server role.  all indications install successful.  i able navigate http://<servername>/iuident.cab , prompted download file.  when try check updates received error "digital signatures on file c:\windows\softwaredistribution\selfupdate\wuident.cab not trusted: error 0x800b0001."  

upon searching google error found article says "aha! need install kb2720211 on wsus server. client has been updated new windows update agent, , new wuagent cannot talk older wsus3sp2 server." http://social.technet.microsoft.com/forums/windowsserver/en-us/8ebfbc1e-06e5-43c5-a540-1ca37c6ffff9/wsus-windows-7?forum=winserverwsus 

i took snapshot , installed kb2720211, indicated had installed correctly.  now when try update error: getauthorizationcookie failure, error = 0x8024400e, soap client error = 7, soap error code = 400, http status code = 200.  google leading me every way on one, , incidentally same error ended on previous installation of wsus, lead me try fresh install.  what missing?  

here log output before installed kb2720211:

2013-12-31 08:55:44:583 1040 324 au #############
2013-12-31 08:55:44:583 1040 324 au ## start ##  au: search updates
2013-12-31 08:55:44:583 1040 324 au #########
2013-12-31 08:55:44:584 1040 324 au <<## submitted ## au: search updates [callid = {84a0563f-85ed-490c-86d4-703ada2a2c13}]
2013-12-31 08:55:44:584 1040 1af0 agent *************
2013-12-31 08:55:44:584 1040 1af0 agent ** start **  agent: finding updates [callerid = automaticupdates]
2013-12-31 08:55:44:584 1040 1af0 agent *********
2013-12-31 08:55:44:584 1040 1af0 agent  * online = yes; ignore download priority = no
2013-12-31 08:55:44:584 1040 1af0 agent  * criteria = "isinstalled=0 , deploymentaction='installation' or ispresent=1 , deploymentaction='uninstallation' or isinstalled=1 , deploymentaction='installation' , rebootrequired=1 or isinstalled=0 , deploymentaction='uninstallation' , rebootrequired=1"
2013-12-31 08:55:44:584 1040 1af0 agent  * serviceid = {3da21691-e39d-4da6-8a4b-b43877bcb1b7} managed
2013-12-31 08:55:44:584 1040 1af0 agent  * search scope = {machine}
2013-12-31 08:55:44:584 1040 1af0 setup checking agent selfupdate
2013-12-31 08:55:44:584 1040 1af0 setup client version: core: 7.6.7600.256  aux: 7.6.7600.256
2013-12-31 08:55:44:594 1040 1af0 misc validating signature c:\windows\softwaredistribution\selfupdate\wuident.cab:
2013-12-31 08:55:44:597 1040 1af0 misc microsoft signed: yes
2013-12-31 08:55:44:597 1040 1af0 misc warning: digital signatures on file c:\windows\softwaredistribution\selfupdate\wuident.cab not trusted: error 0x800b0001
2013-12-31 08:55:44:598 1040 1af0 setup warning: selfupdate check failed download package information, error = 0x800b0001
2013-12-31 08:55:44:598 1040 1af0 setup fatal: selfupdate check failed, err = 0x800b0001
2013-12-31 08:55:44:598 1040 1af0 agent  * warning: skipping scan, self-update check returned 0x800b0001
2013-12-31 08:55:44:598 1040 1af0 agent  * warning: exit code = 0x800b0001
2013-12-31 08:55:44:598 1040 1af0 agent *********
2013-12-31 08:55:44:598 1040 1af0 agent **  end  **  agent: finding updates [callerid = automaticupdates]
2013-12-31 08:55:44:598 1040 1af0 agent *************
2013-12-31 08:55:44:598 1040 1af0 agent warning: wu client failed searching update error 0x800b0001
2013-12-31 08:55:44:598 1040 1228 au >>##  resumed  ## au: search updates [callid = {84a0563f-85ed-490c-86d4-703ada2a2c13}]
2013-12-31 08:55:44:598 1040 1228 au  # warning: search callback failed, result = 0x800b0001
2013-12-31 08:55:44:598 1040 1228 au  # warning: failed find updates error code 800b0001
2013-12-31 08:55:44:598 1040 1228 au #########
2013-12-31 08:55:44:598 1040 1228 au ##  end  ##  au: search updates [callid = {84a0563f-85ed-490c-86d4-703ada2a2c13}]
2013-12-31 08:55:44:598 1040 1228 au #############

here output after kb2720211 install:

2013-12-31 09:59:20:123 1040 324 au #############
2013-12-31 09:59:20:123 1040 324 au ## start ##  au: search updates
2013-12-31 09:59:20:123 1040 324 au #########
2013-12-31 09:59:20:124 1040 324 au <<## submitted ## au: search updates [callid = {105b7b0d-b325-45b7-82a2-44395b3c5bf1}]
2013-12-31 09:59:20:124 1040 1b64 agent *************
2013-12-31 09:59:20:124 1040 1b64 agent ** start **  agent: finding updates [callerid = automaticupdates]
2013-12-31 09:59:20:124 1040 1b64 agent *********
2013-12-31 09:59:20:124 1040 1b64 agent  * online = yes; ignore download priority = no
2013-12-31 09:59:20:124 1040 1b64 agent  * criteria = "isinstalled=0 , deploymentaction='installation' or ispresent=1 , deploymentaction='uninstallation' or isinstalled=1 , deploymentaction='installation' , rebootrequired=1 or isinstalled=0 , deploymentaction='uninstallation' , rebootrequired=1"
2013-12-31 09:59:20:124 1040 1b64 agent  * serviceid = {3da21691-e39d-4da6-8a4b-b43877bcb1b7} managed
2013-12-31 09:59:20:124 1040 1b64 agent  * search scope = {machine}
2013-12-31 09:59:20:124 1040 1b64 setup checking agent selfupdate
2013-12-31 09:59:20:124 1040 1b64 setup client version: core: 7.6.7600.256  aux: 7.6.7600.256
2013-12-31 09:59:20:124 1040 1b64 misc validating signature c:\windows\softwaredistribution\selfupdate\wuident.cab:
2013-12-31 09:59:20:127 1040 1b64 misc microsoft signed: yes
2013-12-31 09:59:20:132 1040 1b64 misc validating signature c:\windows\softwaredistribution\selfupdate\wuident.cab:
2013-12-31 09:59:20:134 1040 1b64 misc microsoft signed: yes
2013-12-31 09:59:20:136 1040 1b64 misc validating signature c:\windows\softwaredistribution\selfupdate\wsus3setup.cab:
2013-12-31 09:59:20:139 1040 1b64 misc microsoft signed: yes
2013-12-31 09:59:20:143 1040 1b64 misc validating signature c:\windows\softwaredistribution\selfupdate\wsus3setup.cab:
2013-12-31 09:59:20:146 1040 1b64 misc microsoft signed: yes
2013-12-31 09:59:20:155 1040 1b64 setup determining whether new setup handler needs downloaded
2013-12-31 09:59:20:155 1040 1b64 setup selfupdate handler not found.  it downloaded
2013-12-31 09:59:20:155 1040 1b64 setup evaluating applicability of setup package "wuclient-selfupdate-activex~31bf3856ad364e35~amd64~~7.6.7600.256"
2013-12-31 09:59:20:156 1040 1b64 setup setup package "wuclient-selfupdate-activex~31bf3856ad364e35~amd64~~7.6.7600.256" installed.
2013-12-31 09:59:20:156 1040 1b64 setup evaluating applicability of setup package "wuclient-selfupdate-aux-toplevel~31bf3856ad364e35~amd64~~7.6.7600.256"
2013-12-31 09:59:20:168 1040 1b64 setup setup package "wuclient-selfupdate-aux-toplevel~31bf3856ad364e35~amd64~~7.6.7600.256" installed.
2013-12-31 09:59:20:168 1040 1b64 setup evaluating applicability of setup package "wuclient-selfupdate-core-toplevel~31bf3856ad364e35~amd64~~7.6.7600.256"
2013-12-31 09:59:20:186 1040 1b64 setup setup package "wuclient-selfupdate-core-toplevel~31bf3856ad364e35~amd64~~7.6.7600.256" installed.
2013-12-31 09:59:20:186 1040 1b64 setup selfupdate check completed.  selfupdate not required.
2013-12-31 09:59:20:219 1040 1b64 pt +++++++++++  pt: synchronizing server updates  +++++++++++
2013-12-31 09:59:20:219 1040 1b64 pt  + serviceid = {3da21691-e39d-4da6-8a4b-b43877bcb1b7}, server url = http://security1vm/clientwebservice/client.asmx
2013-12-31 09:59:20:229 1040 1b64 pt warning: cached cookie has expired or new pid available
2013-12-31 09:59:20:229 1040 1b64 pt initializing simple targeting cookie, clientid = 488f3922-1a4e-4921-b015-25957eeb6500, target group = http://security1vm, dns name = m234.west-music.local
2013-12-31 09:59:20:229 1040 1b64 pt  server url = http://security1vm/simpleauthwebservice/simpleauth.asmx
2013-12-31 09:59:20:233 1040 1b64 pt warning: getauthorizationcookie failure, error = 0x8024400e, soap client error = 7, soap error code = 400, http status code = 200
2013-12-31 09:59:20:234 1040 1b64 pt warning: soap fault: 0x000190
2013-12-31 09:59:20:234 1040 1b64 pt warning:     faultstring:fault occurred
2013-12-31 09:59:20:234 1040 1b64 pt warning:     errorcode:internalservererror(5)
2013-12-31 09:59:20:234 1040 1b64 pt warning:     message:(null)
2013-12-31 09:59:20:234 1040 1b64 pt warning:     method:"http://www.microsoft.com/softwaredistribution/server/simpleauthwebservice/getauthorizationcookie"
2013-12-31 09:59:20:234 1040 1b64 pt warning:     id:6e9e05f7-1c20-43aa-84a8-77339cc06367
2013-12-31 09:59:20:234 1040 1b64 pt warning: failed initialize simple targeting cookie: 0x8024400e
2013-12-31 09:59:20:234 1040 1b64 pt warning: populateauthcookies failed: 0x8024400e
2013-12-31 09:59:20:234 1040 1b64 pt warning: refreshcookie failed: 0x8024400e
2013-12-31 09:59:20:234 1040 1b64 pt warning: refreshptstate failed: 0x8024400e
2013-12-31 09:59:20:234 1040 1b64 pt warning: sync of updates: 0x8024400e
2013-12-31 09:59:20:234 1040 1b64 pt warning: syncserverupdatesinternal failed: 0x8024400e
2013-12-31 09:59:20:234 1040 1b64 agent  * warning: failed synchronize, error = 0x8024400e
2013-12-31 09:59:20:234 1040 1b64 agent  * warning: exit code = 0x8024400e
2013-12-31 09:59:20:234 1040 1b64 agent *********
2013-12-31 09:59:20:234 1040 1b64 agent **  end  **  agent: finding updates [callerid = automaticupdates]
2013-12-31 09:59:20:234 1040 1b64 agent *************
2013-12-31 09:59:20:234 1040 1b64 agent warning: wu client failed searching update error 0x8024400e
2013-12-31 09:59:20:234 1040 19fc au >>##  resumed  ## au: search updates [callid = {105b7b0d-b325-45b7-82a2-44395b3c5bf1}]
2013-12-31 09:59:20:234 1040 19fc au  # warning: search callback failed, result = 0x8024400e
2013-12-31 09:59:20:234 1040 19fc au  # warning: failed find updates error code 8024400e
2013-12-31 09:59:20:234 1040 19fc au #########
2013-12-31 09:59:20:234 1040 19fc au ##  end  ##  au: search updates [callid = {105b7b0d-b325-45b7-82a2-44395b3c5bf1}]
2013-12-31 09:59:20:234 1040 19fc au #############

alright, think figured out... realized having same problem 2003 install, wasn't server.  went , looked @ gpo.  i had "enable client side targeting" enabled , upon investigation realized configured incorrectly.  it had value of update server, rather valid computer group.  i disabled , clients able update.

Windows Server  >  WSUS