Recently at work we installed the latest version of Windows Server Update Services (WSUS) but we had a few issues with installing it. When installing we were getting the error: Unable to connect to the server yourserver.yourdomain. My work colleague spent hours searching forums and help topics but nowhere had the answer. In the end all it appeared to be was drive compression! WSUS will not install or function if the place where it stores the updates is compressed. To turn off, right click the folder where you’re installing to, properties, click advanced button. On the new window that opens un-tick the box “Compress content to save disk space”. You will notice folders and files that are compressed when the names are in blue. Hope this helps you.