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0x80246005

SUS_E_DM_NONETWORK
Network connection was not available

There has been success with renaming the SoftwareDistribution folder:

Click Start, Choose Run.
In the Run box, type services.msc.
Click OK.
Right-click the Automatic Updates service.
Click Stop.
Stopping the service will take a moment.

Rename the "SoftwareDistribution" folder:

  1. Click Start, click Run, type: %systemroot%
    Click OK.
  2. Right-click the SoftwareDistribution folder, and then click Rename.
  3. Type SoftwareDistribution.old, and then press ENTER to rename this folder.

Click Start. Choose Run.
In the Run box, type services.msc.
Click OK.
Right-click the Automatic Updates service.
Click Start.
Starting the service will take a moment.

Try running the Updates again.

Always remember if in doubt, you can always copy the contents of the Datastore folder to another area on your hard drive as a backup.

You cannot install some updates or programs
http://support.microsoft.com/kb/822798

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