SUS and Local Group Policy

[GTS2K]

I have successfully installed SUS on a W2K server and downloaded, approved patches. Now, since we are not in an AD environment, I have to configure local group policy in each of the workstations in our company. The policy is set to:
1. Specify instranet Microsoft update service location =

http://myserver

2. Configure Automatic Updates = 3 - Autodownload and notify for install, 0- everyday, install time 12:00.

In our environment, most users are power users.

Problem: It seems that my test workstation is not seeing my SUS server. I have set my SUS server with

http://myserver

and have approved patches.

Any advice will be greatly appreciated.