Software Update Scan fails with error 0x80004005

I ran across an issue this morning where Windows Updates were not getting deployed to a client. I checked the reports, and found that the client was not reporting any missing updates. Additionally, not updates were waiting to install in Software Center. However I knew this client was not working, simply based on the update install time stamps. The first thing I check was policy. The client appeared to have a recent policy and was getting applications and programs. The execmgr.log was also clean. Next, I was suspicious of the scan agent. When I checked the ScanAgent.log, I found the error 0x8004005. Additionally, I found the following error in the WUAHandler.log:

Failed to Add Update Source for WUAgent of type (2) and id ({C895843B-710B-41E6-AE3B-0C6DB4D52BD7}). Error = 0x80004005.

A simple google search told me to check the local group policy. When I cracked a gpedit.msc, I knew something was up as I got an error telling me I couldn’t access the files (even though I was an admin). Simply deleting the C:\Windows\System32\GroupPolicy folder fixed the error accessing gpedit.msc as well as the scan error.

Here is the link I found regarding checking local group policy:
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