To verify the software update, you can refer to C:\Windows\System32\CCM\Logs\Wuahandler.log
The log will provide an adequate information for you to identify the problem related to software update.
One of the most common error is wuahandler.log indicated "Failed to Add Update Source for WUAgent - Error = 0x80040692" .
Cause: This can happen when there is a Group policy set in the domain that is managing updates and patching machines in the domain.
The software updates feature automatically configures a local Group Policy setting for the Configuration Manager 2007 client so that it is configured with the software update point source location and port number. Both the server name and port number is required for the software updates client to find the software update point. If an Active Directory Group Policy setting is applied to computers for software update point client installation, this overrides the local Group Policy setting. Unless the value of the setting is exactly the same (server name and port), this causes the Configuration Manager 2007 software updates feature to fail on the client.
Resolution:
a) Remove or don't set "Specify intranet Microsoft update service location" in the Computer Configuration -> Administrative Templates -> Windows Components -> Windows Update
or
b) Set the same setting for group policy and local policy.
eg:
-group policy-"Specify intranet Microsoft update service location" -http://sccm01.lab.com.my:80
-local policy-http://sccm01.lab.com.my
