Windows failed to install the following update with error 0x800706

[Stan]

Hi

I have a W2000 Server acting as Terminal Server hosting Citrix Applications.
I am new and I have found that MS Office applications on the server need
MSUpdates, but when I attempt to install updates I get Event ID 20
"Installation Failure: Windows failed to install the following update with
error 0x80070668: Security Update for Microsoft Project 2002 (KB949005)."

I have inherited the server an it has been locked down a lot by local
plocies and user rights changes. I belive I have got to a stage where OS
Updates have been installed but I am not able to install MS Offices updates.

Researching "0x80070668" I can see this relates to
"ERROR_INSTALL_REMOTE_DISALLOWED" Error with a meaning of "Only
administrators have permission to add, remove, or configure server software
during a Terminal services remote session. If you want to install or
configure software on the server, contact your network administrator"

I am the administrator so I don't know what to check to give rights ro allow
MSUpdates to work.

If there is a way to remove restrictive local settings and revert to MS
Defaults for Registry & rights please let me know.

Thanks - Stan