Nobody followed up, but I figured out my problem.
I was running MandrakeUpdate from an NFS mounted directory. If I move
do a local directory, like / and try run MandrakeUpdate it works. I
don't know why it matters as it doesn't seem to write anything to that
directory but it matters.
On an package updated Mandrake 7.2 system I have a copy of the
Mandrake 7.2 and updates, I made these available to the local network
via Mandrake 7.2's anonftp package. I just installed another system
over the network via FTP but when I try to use MandrakeUpdate to
update the latest packages it