I was starting to post this as a question but I just got it working. The updates for my SCCM install were failing to download.
I found the log sample below from the patchdownloader.log
Log Sample Start:
HttpSendRequest failed HTTP_STATUS_NOT_FOUND $$<Software Updates Patch Downloader><Fri Aug 08 11:45:44.690 2008 Eastern Daylight Time><thread=2292 (0x8F4)>
Download http://www.download.windowsupdate.com/msdownload/update/v3-19990518/cabpool/exchange2003-kb931978-x86-chs_df730b4a221003767fd252d7ab255825055adc7f.exe to C:\TEMP\CAB412.tmp returns 404 $$<Software Updates Patch Downloader><Fri Aug 08 11:45:44.690 2008 Eastern Daylight Time><thread=2292 (0x8F4)>
ERROR: DownloadContentFiles() failed with hr=0x80070194 $$<Software Updates Patch Downloader><Fri Aug 08 11:45:44.690 2008 Eastern Daylight Time><thread=5096 (0x13E8)>
After validating WSUS was working and the ability to download the updates outside of the wizard
I ended up going back to my most recent packagesRepointed my download location from internet on a new test package/update list to a pointless network location a couple of times, repointed to the internet and I got a partial download
I deleted and recreated one package and modified its package source share path. I am not sure how unique that path has to be per deployment package but I made the path definitely unique to this package. Once that Deployment Package was recreated my downloads appeared to work correctly.
I also did not know that the initial download is processed through the system variable temp directoy on the site server