After 5 weeks intermittantly troubleshooting the Windows Update 8024402C
error I finally fixed it. I noticed in the Windows Update log that the
computer was trying to get its update from httP://sussrv and not
http://update .microsoft.com. Also noticed that on the Windows Update window
it said You receive updates: Provided by your system administrator, which was
not the case.

I remebered that this problem did not occur until I joined the domain so I
started to look at the GPO's more closely than I did before. In Active
directory Users and Computers>Right click on Domain>Properties>Group Policy
Tab> there was a default domain policy.

I opened the default domain policy up and selected Computer
Configuration>Administrative Templates>Windows Components>Windows
Update>Specify Intranet Microsoft Update Service Location was set to enabled
and in the windows was the setting http://sussrv. I set the policy to Not
configured and updated the domain security policy and restarted my computer.
I then was able to perform the Windows Update with no issues and the You
Receive Updates section had changed.

I first had ruled out any DNS issues by running an NSLOOKUP against
update.microsoft.com, proxy or firewall setting issues. Bottom line is to
look at the Windows Update log and see why it cannot receive updates.