Microsoft
First published on TechNet on Aug 25, 2005
The SBS Documentation Team and Susan Bradley have posted the resolution to the "unable to install WSUS" issue on OEM installs of SBS 2003:

http://blogs.msdn.com/sbsdocsteam/archive/2005/08/24/455956.aspx

and

http://msmvps.com/bradley/archive/2005/08/24/63985.aspx



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 SERVERNAME WSUS -E -b -n -Q "USE SUSDB EXEC sp_grantlogin N'DOMAIN IWAM_OEM-MACHINE-NAME ' EXEC sp_grantdbaccess N'DOMAINIWAM_OEM-MACHINE-NAME' EXEC sp_addrolemember webService,N'DOMAIN IWAM_OEM-MACHINE-NAME '"
Msg 15401 , Level 11, State 1, Server SERVERNAME WSUS, Procedure sp_grantlogin, Line 41
Windows NT user or group 'DOMAIN IWAM_OEM-MACHINE-NAME ' not found. Check the name again.
Msg 15401 , Level 11, State 1, Server SERVERNAME WSUS, Procedure sp_grantdbaccess, Line 99
Windows NT user or group 'DOMAIN IWAM_OEM-MACHINE-NAME '' not found. Check the name again.
Msg 15410 , Level 11, State 1, Server SERVERNAME WSUS, Procedure sp_addrolemember, Line 66
User or role 'DOMAIN IWAM_OEM-MACHINE-NAME ' does not exist in this database.

(Obviously, SERVERNAME , DOMAIN, and IWAM_OEM-MACHINE-NAME will be machine- and domain-specific).