How Can We Enable Basic Proxy Authentication On The Software Update Points?

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The SCCM admin console does not support configuring the Software Update Point WSUS servers to use basic proxy authentication.  One could run the WSUS administration console and enable basic proxy authentication, but SCCM will overwrite those settings.  The following workaround is untested and not supported in any way by Microsoft, but will allow for basic proxy authentication on a SUP server:

1.  Stop Site Component Manager and SMS Executive on the SCCM server.
2.  Go to WSUS and enable basic proxy authentication.
3.  Go to <SCCM Install Dir>\inboxes\sitectrl.box and make a backup of the sitectrl.ct0 file.
4.  Edit with Notepad sitectrl.ct0 and look for a section similar to this one:

BEGIN_SYSTEM_RESOURCE_USE
    RESOURCE<Windows NT Server><["Display=\\Server\"]MSWNET:["SMS_SITE=PS1"]\\Server\>
    ROLE<SMS Software Update Point>
    PROPERTY <UseProxy><><><1>
    PROPERTY <ProxyName><><proxyname><0>
    PROPERTY <ProxyServerPort><><><80>
    PROPERTY <AnonymousProxyAccess><><><0>
    PROPERTY <AllowProxyCredentialsOverNonSsl><><><1>
   PROPERTY <UserName><><SCMATRIX\SUMWSUSAdmin><0>
       BEGIN_PROPERTY_LIST
        <Objects Polled By Site Status>
        <["Display=\\Server\C$\Program Files\Microsoft Configuration Manager\"]MSWNET:["SMS_SITE=PS1"]\\Server\C$\ Program Files\Microsoft Configuration Manager\>
    END_PROPERTY_LIST
END_SYSTEM_RESOURCE_USE

5.  Add the AllowProxyCredentislOverNonSsl line and save the file.
6.  Restart Site Component Manager.

There is also a sample script here to perform these changes.