The SBS Documentation Team and Susan Bradley have posted the resolution to the “unable to install WSUS” issue on OEM installs of SBS 2003:
To confirm you are experiencing this issue, two conditions must be true:
1. You must have an OEM install. If you installed off of retail media and WSUS is not installing on your SBS for any reason, I want to hear from you, but the fix above probably isn’t what is preventing WSUS from installing.
2. Look at your WSUSCA_xxxxxx_yyyy.log in the Program filesUpdate ServicesLogFiles of your install drive. Affected machines will show an error similar to the following :
osql.exe -S SERVERNAMEWSUS -E -b -n -Q “USE SUSDB EXEC sp_grantlogin N’DOMAINIWAM_OEM-MACHINE-NAME‘ EXEC sp_grantdbaccess N’DOMAINIWAM_OEM-MACHINE-NAME‘ EXEC sp_addrolemember webService,N’DOMAINIWAM_OEM-MACHINE-NAME‘”
Msg 15401, Level 11, State 1, Server SERVERNAMEWSUS, Procedure sp_grantlogin, Line 41
Windows NT user or group ‘DOMAINIWAM_OEM-MACHINE-NAME‘ not found. Check the name again.
Msg 15401, Level 11, State 1, Server SERVERNAMEWSUS, Procedure sp_grantdbaccess, Line 99
Windows NT user or group ‘DOMAINIWAM_OEM-MACHINE-NAME” not found. Check the name again.
Msg 15410, Level 11, State 1, Server SERVERNAMEWSUS, Procedure sp_addrolemember, Line 66
User or role ‘DOMAINIWAM_OEM-MACHINE-NAME‘ does not exist in this database.
(Obviously, SERVERNAME, DOMAIN, and IWAM_OEM-MACHINE-NAME will be machine- and domain-specific).