unauthorized access when updating

I have a W2K3 Nod server that is on a domain and workstations that are not on the domain, both xp and Windows 7. Currently I am trying to get the Windows 7 computer that is not on the domain to update via the http mirror I set up with authentication set to none. The folder the mirror has been set to have been populated with the update files and I gave everyone rights to the folder. When I try to update from the Windows 7 client, I am getting unauthorized access and the update is failing. This is a new server build and new client, so I don't have any computers successfully updating from the server yet. I was able to push the installation to this Win 7 computer after adding the Admin$ share so I know they can communicate with each other and port 2221 is open on the firewall. Any suggestions? Thanks.

 

From one of the workstations, can you confirm that the webserver is working by browsing to the update.ver file. The path would be something like:

http://servername:2221/update.ver

Replace servername with your server name.