> Windows Software Update Services doesn't require the end-user to be 
> part of a domain to get updates. You just need to define the WSUS 
> server as the source for updates by changing a few registry entries 
> and make sure the server is available via HTTP or HTTPS to your 
> customers. You can read more at Microsoft's site.

Even though you can make it work, I believe in doing so you will be
running afoul of the WSUS license agreement if it's not a corporate
LAN/Domain.  I don't have the text of it in front of me, but I remember
this issue coming up on
<nntp://microsoft.public.windows.server.update_services>

Since automating clients to use wsus requires either a registry or
local/group policy change on the clients, you would have to find some way
of manipulating this facet as well.

I would say the best course is to contact the wsus/mu team via the above
mentioned newsgroup and see if they'll become more cache friendly with a
future version of wsus.  The squid trick seems ideal if only you could be
assured of having the latest files. 

~JasonG

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