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WSUS SP1 Upgrade fails

Came across a problem when upgrading to WSUS SP1 earlier today. If you’ve moved your WSUS database as per my post your upgrade will fail with the following:

Success  MWUSSetup  Validating pre-requisites... 
Success  MWUSSetup  Creating database backup...
Success  MWUSSetup  The SQL server instance is remote. No database backup will be created
Success  MWUSSetup  Removing Wsus...
Error  MWUSSetup  RemoveWsus: MWUS Uninstall Failed (Error 0x80070643: Fatal error during installation.)
Error  MWUSSetup  C UpgradeDriver::PerformSetup: Failed to remove earlier version of WSUS (Error 0x80070643: Fatal error during installation.)
Error  MWUSSetup  C SetupDriver::LaunchSetup: Setup failed (Error 0x80070643: Fatal error during installation.)

The solution is to make sure the following registry keys are set:

[HKEY_LOCAL_MACHINE\SOFTWARE\Microsoft\Update Services\Server\Setup]
"SqlInstanceIsRemote"=dword:00000001
"wYukonInstalled"=dword:00000000

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