Hi Seabass and thanks for the reply.
I had read this in researching my problem on the internet and have tried various setups with no luck.
Currently I have created an application pool for the site the updater is connecting to and set its identity to be localsystem.
I have edited the security permissions of the folder being accessed in inetpub/wwwroot and allowed pretty much every account there full access.
Any ideas?
Ta
Ash