The WSUS administration console was unable to connect to the WSUS Server via the remote API.
Verify that the Update Services service, IIS and SQL are running on the server. If the problem persists, try restarting IIS, SQL, and the Update Services Service.
The WSUS administration console has encountered an unexpected error. This may be a transient error; try restarting the administration console. If this error persists, try removing the persisted preferences for the console by deleting the wsus file under %appdata%\Microsoft\MMC\.
System.IO.IOException -- The handshake failed due to an unexpected packet format.
event ids: 12042, 12022, 12032, 12012, 12002
Source: system
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Resolution:
Grant the "Network Service" account FULL CONTROL on folders:
C:\Windows\Temp
C:\temp
C:\WSUS\WSUSContent
C:\Program Files\Update Services\WebServices
Reference: http://technet.microsoft.com/en-us/library/cc708487(WS.10).aspx