Today, all of a sudden, every Windows 7 machine in our office fails Windows Update with the 80246002 error. Two machines were brand new installations.
As a temporary fix, I changed the DNS servers to 8.8.8.8 and 8.8.4.4 (Google’s DNS Servers) and it now works. We were using OpenDNS. I’m not sure why it works with Google’s DNS and not OpenDNS. I’ll post more info as it becomes available.