From Microsoft:
Install the Automatic Updates Feature
If you are running Windows 2000 Service Pack 3 (SP3), you do not have to install Automatic Updates. Windows automatic updating is included in Windows 2000 SP3.
You can also install Automatic Updates on Windows 2000 Professional-based, Windows 2000 Server-based, or Windows 2000 Advanced Server-based computers that are running Service Pack 2 (SP2). To install the Automatic Updates feature on Windows 2000 SP2 if you are an administrator, install any of the following updates: • The Windows Automatic Updating, June 2002 update.
To obtain this update, visit the following Microsoft Windows Update Web site:
http://v4.windowsupdate.microsoft.com/en/default.asp (http://v4.windowsupdate.microsoft.com/en/default.asp)
• The Automatic Updates June 2002 update.
To obtain this update, visit the following Microsoft Web site:
http://www.microsoft.com/windows2000/downloads/recommended/susclient/default.asp (http://www.microsoft.com/windows2000/downloads/recommended/susclient/default.asp)
Note This update is a Windows Installer package that is used for corporate deployment. You must use the new Automatic Updates feature if you are a network administrator who is using Microsoft Software Update Services. To use Automatic Updates with a server that is running Software Update Services, see the white paper on the following Microsoft Web site:
Software Update Services Deployment White Paper (http://www.microsoft.com/windowsserversystem/sus/susdeployment.mspx)
Note You must restart your computer after you install either of these updates. Automatic Updates does not download any updates until you have configured it to do so. If Automatic Updates is not configured in 24 hours after you install it, either the network administrator or the user who is logged on locally as an administrator is prompted to configure it.
Change the Settings for Automatic Updates
To change the settings for Automatic Updates, use the Automatic Updates tool in Control Panel. You must be logged on as a computer administrator to install components or modify Automatic Updates settings. If your computer is connected to a network, network policy settings may prevent you from completing these procedures.
Windows 2000 domain administrators and local computer administrators can also configure Automatic Updates by using Group Policy. For additional information about using Group Policy to configure Automatic Updates, click the following article number to view the article in the Microsoft Knowledge Base:
328010 (http://support.microsoft.com/kb/328010/) How to configure automatic updates by using Group Policy or registry settings
Turn On Automatic Updates
To turn on automatic updates for your computer: 1. In Control Panel, double-click Automatic Updates.
2. Click one of the following options:• Notify me before downloading any updates and notify me again before installing them on my computer
• Download the updates automatically and notify me when they are ready to be installed
• Automatically download the updates, and install them on the schedule that I specify
Turn Off Automatic Updates
To turn off automatic updates for your computer: 1. In Control Panel, double-click Automatic Updates.
2. Click to clear the Keep my computer up to date. With this setting enabled, Windows Update software may be automatically updated prior to applying any other updates check box.
If you are a Windows 2000 domain administrator or a local computer administrator, you can turn off Automatic Updates by either using Group Policy or by directly editing the registry. For additional information about using Group Policy or registry settings to configure Automatic Updates, click the following article number to view the article in the Microsoft Knowledge Base:
328010 (http://support.microsoft.com/kb/328010/) How to configure automatic updates by using Group Policy or registry settings
Configure Windows to Remind You About Pending Updates
When Windows notifies you that updates are available, click Remind Me Later in the Automatic Updates dialog box before you download or install the update. In the Reminder dialog box, you can specify the time Windows waits before reminding you. If the reminder is for downloading, Windows reminds you only when you are connected to the Internet. If the reminder is for installing, Windows reminds you according to the schedule that you specify.
Download Available Updates
If you configured automatic updating to notify you before downloading any updates, an icon is displayed in the notification area each time new updates are found. To download the new available updates: 1. Double-click the icon in the notification area.
2. Perform either of the following steps:• If you want Windows to download an update, make sure that the check box next to the update is selected.
• If you do not want Windows to download an update, click to clear the check box next to the update.
Your selected updates are downloaded in the background so that you can continue to work uninterrupted. Downloading does not interfere with or slow down other network activity, such as Internet browsing.
When the updates are downloaded, the icon is displayed in the notification area to notify you that updates are ready to be installed.
Sounds like you may need SP 3, to get the Automatic Updates installed correctly. Go to Microsoft, put in Windows 2000 Professional, and find the SP 3 update. Download and install this, then follow the rest of the directions. This should fix your problem.