We found a workstation getting this error because it was configured to get its updates from a non-existent WSUS server.  The fix is to remove the following registry key:

HKLM\Software\Policies\Microsoft\Windows\WindowsUpdate

This will revert the WUAgent to the original installed behavior of Automatic Updates (i.e., from Mocrosoft.)

You will probably get update Error 8024A006 after this change which can be resolved by stopping the Windows Update service, renaming the SoftwareDistribution folder in C:\Windows, then starting Windows Update service.

(Note that if you get the Windows Update Error 800B0001 in a WSUS environment, that situation is resolved by installing KB2720211 on the WSUS server.)