I got this info on bits from:
http://www.archivum.info/microsoft.p.../msg00067.html

"Lawrence Garvin [MVP]" wrote:

>
> Could you expand a bit on this BITS dns bug that you've been told about?
>
> What was your source for this information?
>
> I'm not aware of any such bugs, nor am I aware of any need to be making
> entries in the hosts file in order to get to a regional windowsupdate site.
>
>
> "Lude" <Lude@discussions.microsoft.com> wrote in message
> news:0D227016-7074-4FF2-92E2-F5E70F439505@microsoft.com...
> >I found out what the problem is. I had to install the latest version of the
> > windows upate client from
> > http://download.windowsupdate.com/v6...gent20-x86.exe
> >
> > And then I had to make this entry in my hosts file:
> > 207.46.245.220 au.download.windowsupdate.com because bits 2.0 has a dns bug.
> > Thanks for all your help and I hope this will help anyone with the same type
> > of problem.
> >
> > Thanks!
> >
> > "Lawrence Garvin [MVP]" wrote:
> >
> >>
> >> "Lude" <Lude@discussions.microsoft.com> wrote in message
> >> news:8FE1EAB9-4E68-4E74-9157-2A5DA4F33168@microsoft.com...
> >> > Some more info: I'm not using a WSUS server and am using a automatic
> >> > configuration script that points to a proxy. Maybe bits can't use the
> >> > config
> >> > script?
> >>
> >> This could be the issue.
> >>
> >> While the auto config script may properly configure IE, it will not
> >> configure
> >> WinHTTP.
> >>
> >> You should try the command 'proxycfg -u' to replicate your IE proxy
> >> settings
> >> to WinHTTP, and then try AU again.
> >>
> >> Alternatively, run the Client Diagnostic Tool on the client, and review the
> >> output. Post the output if you'd like assistance interpreting the results.
> >>
> >>
> >>
>
>
>