Cannot install remote or local SUP

Every time I try to install the (local or remote) Active SUP at my CAS I get the following error in the WCM.log
 
System.Net.WebException: The request failed with HTTP status 417: Expectation Failed.~~   at Microsoft.UpdateServices.Administration.AdminProxy.CreateUpdateServer(Object[] args)~~   at Microsoft.UpdateServices.Administration.AdminProxy.GetUpdateServer(String serverName, Boolean useSecureConnection, Int32 portNumber)~~   at Microsoft.SystemsManagementServer.WSUS.WSUSServer.ConnectToWSUSServer(String ServerName, Boolean UseSSL, Int32 PortNumber)
 
I turned on verbose tracing in the WCM.log and got this
System.Net.WebException: The underlying connection was closed: An unexpected error occurred on a receive. ---> System.IO.IOException: Unable to read data from the transport connection: An established connection was aborted by the software in your host machine. ---> System.Net.Sockets.SocketException: An established connection was aborted by the software in your host machine~~   at System.Net.Sockets.NetworkStream.Read(Byte[] buffer, Int32 offset, Int32 size)~~   --- End of inner exception stack trace ---~~   at System.Net.ConnectStream.Read(Byte[] buffer, Int32 offset, Int32 size)~~   at System.Net.HttpWebRequest.MakeMemoryStream(Stream stream)~~   --- End of inner exception stack trace ---~~   at Microsoft.UpdateServices.Administration.AdminProxy.CreateUpdateServer(Object[] args)~~   at Microsoft.UpdateServices.Administration.AdminProxy.GetUpdateServer(String serverName, Boolean useSecureConnection, Int32 portNumber)~~   at Microsoft.SystemsManagementServer.WSUS.WSUSServer.ConnectToWSUSServer(String ServerName, Boolean UseSSL, Int32 PortNumber)
 
None of which is meaning a lot to me. Anyone have an idea whats going on here???
 

So WSUS is installed and working on the remote box?  You did a full install and exited at the configuration wizard?

Is there a existing WSUS server in your environment? It could be possible that a GPO is pointing you towards it? Check HKEY_LOCAL_MACHINE\SOFTWARE\Policies\Microsoft\Windows\WindowsUpdate in the registry and see if its pointing to a server in your environment . 

ukmuz,
 
What do event logs on host/target have to say during the attempt? Event logs might have some HTTP events that tell you a little more about why the connection was closed. Is either host/target configured to use IPSec or Firewall?