Just re-built a Win2K std server, and got the same result - Error 0x800C0002.
Perhaps Microsoft has removed support for these servers.
During initial visit to Windows Update, I get the prompt to update the
updater, which I allow, then it dies. Firewall is wide open, and no AV, or
other software installed on the server yet.
Oddly enough, the automatic updates came down, I just can use the Windows