After upgrading to SP1 I can no longer schedule Windows updates on an operating system image. The Scheduled Updates Status goes from Processing, to "Failed to mount the image on the system". This feature did work prior to upgrading to SP1.
I have made sure that Endpoint Protection has C:\ConfigMgr_OfflineImageServicing as an exception.
I've uninstalled WSUS 3.0 SP2 and reinstalled it.
When I look at the OfflineServicingMgr.log file I can see the following:
Schedule with ID 16777237 is active $$<SMS_OFFLINE_SERVICING_MANAGER><08-20-2013 13:14:43.187+420><thread=6028 (0x178C)>
Schedule processing thread started. ThreadID = 0xC48 (3144) $$<SMS_OFFLINE_SERVICING_MANAGER><08-20-2013 13:14:43.193+420><thread=6028 (0x178C)>
1 Schedule(s) are marked for RunNow by the administrator $$<SMS_OFFLINE_SERVICING_MANAGER><08-20-2013 13:14:43.203+420><thread=3144 (0xC48)>
1 Schedule(s) are scheduled to be run at this time $$<SMS_OFFLINE_SERVICING_MANAGER><08-20-2013 13:14:43.210+420><thread=3144 (0xC48)>
Processing started for Schedule with ID 16777237 $$<SMS_OFFLINE_SERVICING_MANAGER><08-20-2013 13:14:43.296+420><thread=3144 (0xC48)>
STATMSG: ID=7900 SEV=I LEV=M SOURCE="SMS Server" COMP="SMS_OFFLINE_SERVICING_MANAGER" SYS=WSCCM01.siskiyous.edu SITE=COS PID=2384 TID=3144 GMTDATE=Tue Aug 20 20:14:43.307 2013 ISTR0="16777237" ISTR1="" ISTR2=""
ISTR3="" ISTR4="" ISTR5="" ISTR6="" ISTR7="" ISTR8="" ISTR9="" NUMATTRS=0 $$<SMS_OFFLINE_SERVICING_MANAGER><08-20-2013 13:14:43.307+420><thread=3144 (0xC48)>
Initialization of schedule processing succeeded $$<SMS_OFFLINE_SERVICING_MANAGER><08-20-2013 13:14:43.413+420><thread=3144 (0xC48)>
There is an image associated with this schedule. $$<SMS_OFFLINE_SERVICING_MANAGER><08-20-2013 13:14:43.435+420><thread=3144 (0xC48)>
Total number of individual updates to be installed is 1. $$<SMS_OFFLINE_SERVICING_MANAGER><08-20-2013 13:14:43.444+420><thread=3144 (0xC48)>
STATMSG: ID=7903 SEV=I LEV=M SOURCE="SMS Server" COMP="SMS_OFFLINE_SERVICING_MANAGER" SYS=WSCCM01.siskiyous.edu SITE=COS PID=2384 TID=3144 GMTDATE=Tue Aug 20 20:14:43.470 2013 ISTR0="COS00036" ISTR1="" ISTR2=""
ISTR3="" ISTR4="" ISTR5="" ISTR6="" ISTR7="" ISTR8="" ISTR9="" NUMATTRS=0 $$<SMS_OFFLINE_SERVICING_MANAGER><08-20-2013 13:14:43.481+420><thread=3144 (0xC48)>
Copy image ( ID COS00036, size 2632 MB ) $$<SMS_OFFLINE_SERVICING_MANAGER><08-20-2013 13:14:43.613+420><thread=3144 (0xC48)>
copying file from '\\wsccm01\Sources\OperatingSystems\Windows7\64bit\sources\install.wim' $$<SMS_OFFLINE_SERVICING_MANAGER><08-20-2013 13:14:43.630+420><thread=3144 (0xC48)>
to 'C:\ConfigMgr_OfflineImageServicing\COS00036\install.wim' .... $$<SMS_OFFLINE_SERVICING_MANAGER><08-20-2013 13:14:43.644+420><thread=3144 (0xC48)>
Copying (25% complete)... $$<SMS_OFFLINE_SERVICING_MANAGER><08-20-2013 13:15:47.086+420><thread=3144 (0xC48)>
Copying (50% complete)... $$<SMS_OFFLINE_SERVICING_MANAGER><08-20-2013 13:16:56.165+420><thread=3144 (0xC48)>
Copying (75% complete)... $$<SMS_OFFLINE_SERVICING_MANAGER><08-20-2013 13:17:57.700+420><thread=3144 (0xC48)>
Copying (100% complete)... $$<SMS_OFFLINE_SERVICING_MANAGER><08-20-2013 13:19:01.032+420><thread=3144 (0xC48)>
STATMSG: ID=7905 SEV=I LEV=M SOURCE="SMS Server" COMP="SMS_OFFLINE_SERVICING_MANAGER" SYS=WSCCM01.siskiyous.edu SITE=COS PID=2384 TID=3144 GMTDATE=Tue Aug 20 20:19:01.887 2013 ISTR0="COS00036" ISTR1="" ISTR2=""
ISTR3="" ISTR4="" ISTR5="" ISTR6="" ISTR7="" ISTR8="" ISTR9="" NUMATTRS=0 $$<SMS_OFFLINE_SERVICING_MANAGER><08-20-2013 13:19:01.902+420><thread=3144 (0xC48)>
[Schedule ID 16777237] Started processing image package with ID COS00036 $$<SMS_OFFLINE_SERVICING_MANAGER><08-20-2013 13:19:01.916+420><thread=3144 (0xC48)>
STATMSG: ID=7906 SEV=I LEV=M SOURCE="SMS Server" COMP="SMS_OFFLINE_SERVICING_MANAGER" SYS=WSCCM01.siskiyous.edu SITE=COS PID=2384 TID=3144 GMTDATE=Tue Aug 20 20:19:01.939 2013 ISTR0="COS00036" ISTR1="" ISTR2=""
ISTR3="" ISTR4="" ISTR5="" ISTR6="" ISTR7="" ISTR8="" ISTR9="" NUMATTRS=0 $$<SMS_OFFLINE_SERVICING_MANAGER><08-20-2013 13:19:01.949+420><thread=3144 (0xC48)>
Image package file with ID COS00036 contains 1 image(s) $$<SMS_OFFLINE_SERVICING_MANAGER><08-20-2013 13:19:02.072+420><thread=3144 (0xC48)>
Processing image at index 1 $$<SMS_OFFLINE_SERVICING_MANAGER><08-20-2013 13:19:02.080+420><thread=3144 (0xC48)>
Mounting image at index 1. Image file='C:\ConfigMgr_OfflineImageServicing\COS00036\install.wim', MountDirectory='C:\ConfigMgr_OfflineImageServicing\COS00036\ImageMountDir', ImageFileType='WIM', Mode='ReadWrite' $$<SMS_OFFLINE_SERVICING_MANAGER><08-20-2013
13:19:02.087+420><thread=3144 (0xC48)>
Unable to mount image file~ $$<SMS_OFFLINE_SERVICING_MANAGER><08-20-2013 13:19:02.175+420><thread=3144 (0xC48)>
WIM::MountWIMImage returned code 0x80070005~ $$<SMS_OFFLINE_SERVICING_MANAGER><08-20-2013 13:19:02.182+420><thread=3144 (0xC48)>
Failed to mount image~ $$<SMS_OFFLINE_SERVICING_MANAGER><08-20-2013 13:19:02.204+420><thread=3144 (0xC48)>
MountImage returned code 0x80070005~ $$<SMS_OFFLINE_SERVICING_MANAGER><08-20-2013 13:19:02.209+420><thread=3144 (0xC48)>
Image Mount failed with error 5 $$<SMS_OFFLINE_SERVICING_MANAGER><08-20-2013 13:19:02.216+420><thread=3144 (0xC48)>
STATMSG: ID=7912 SEV=E LEV=M SOURCE="SMS Server" COMP="SMS_OFFLINE_SERVICING_MANAGER" SYS=WSCCM01.siskiyous.edu SITE=COS PID=2384 TID=3144 GMTDATE=Tue Aug 20 20:19:02.224 2013 ISTR0="COS00036" ISTR1="1" ISTR2="C:\ConfigMgr_OfflineImageServicing\COS00036\ImageMountDir"
ISTR3="5" ISTR4="" ISTR5="" ISTR6="" ISTR7="" ISTR8="" ISTR9="" NUMATTRS=0 $$<SMS_OFFLINE_SERVICING_MANAGER><08-20-2013 13:19:02.228+420><thread=3144 (0xC48)>
Completed processing image package COS00036. Status = Failed $$<SMS_OFFLINE_SERVICING_MANAGER><08-20-2013 13:19:02.331+420><thread=3144 (0xC48)>
Successfully deleted entry from database for schedule ID=16777231 Name="" assigned to ImageID=COS00036 $$<SMS_OFFLINE_SERVICING_MANAGER><08-20-2013 13:19:02.366+420><thread=3144 (0xC48)>
Updated history for image package COS00036 in the database $$<SMS_OFFLINE_SERVICING_MANAGER><08-20-2013 13:19:02.389+420><thread=3144 (0xC48)>
Schedule processing failed $$<SMS_OFFLINE_SERVICING_MANAGER><08-20-2013 13:19:02.399+420><thread=3144 (0xC48)>
Processing completed for Schedule with ID 16777237 $$<SMS_OFFLINE_SERVICING_MANAGER><08-20-2013 13:19:02.407+420><thread=3144 (0xC48)>
Thank you for any suggestions on getting this figured out.