Here's an interesting issue written up by Scott Ellison, a Senior Support Escalation Engineer in our Charlotte, NC office.  I already posted this to our WSUS support blog but I figured you might miss it if I didn't post it here as well:

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Issue: When a ConfigMgr 2007 admin attempts to deploy a software update you may receive the following errors in the UpdatesHandler.log:

Starting or resuming update (34b52415-a5ba-41e9-8072-9d2dee8b22a9). UpdatesHandler 8/1/2008 2:55:55 PM 3036 (0x0BDC)
Failed to initiate install of WSUS updates, error = 0x80240033 UpdatesHandler 8/1/2008 2:57:20 PM 3036 (0x0BDC)
Failed to start WSUSUpdate, error = 0x80240033 UpdatesHandler 8/1/2008 2:57:20 PM 3036 (0x0BDC)
CDeploymentJob -- Failed to start procesing of the update (34b52415-a5ba-41e9-8072-9d2dee8b22a9). Error = 0x80240033 UpdatesHandler 8/1/2008 2:57:20 PM 3036 (0x0BDC)

Cause:  This can occur if the End User License Agreement (EULA) is missing from the WSUS Webcontent folder. By default
this will be installed to C:\WSUS\WSUSContent.

Resolution: In order to force WSUS to download missing EULAs, run the following from the command prompt:

wsusutil reset

This will force WSUS to check its database and metadata for missing EULAs and if they are missing it will download them from Microsoft Update. Complete a manual sync from within the Configuration Manager Admin and after this, the deployment package should appear and be ready to be installed.

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Thanks Scott!

J.C. Hornbeck | Manageability Knowledge Engineer