Using Windows Explorer, navigate to
WINDOWS\SoftwareDistribution\WuRedirOpen the WuRedir subfolder. How many folders are in there ?
I'm hoping 2 ...
Now open the folders and check the Created and Modified Dates of the 
wuredir.xml files by right clicking them and choosing Properties.Please post back with the Created and Modified dates and how many 
folders are present in WuRedir.I think the issue is that the update server is checking the validity of 
the wuredir and wsus3setup.cabs and for some reason, the system is not 
sending a response to back to the update server. The update server than 
appears to be attempting to download the .cabs to the system but fails 
to do so due to the 0x80072EE7 error.BTW, who is your ISP ?