I know I'm bumping an old one, but I finally have something that migh help someone else. I edited the RegSrvc.exe.config with Notepad and the line where "<loadFromRemoteSources enabled="true"/> " it looked like double quotes, but after more than a year of fighting this I saw the post from zerahzurc that says he had to use and XML editor instead of notepad. Downloaded the editor he mentioned and as it opened the file it showed it couldn't parse the "true" because it was expecting quotes. In the editor they looked like asterisks. Changed it and restarted the SMS_EXUTIVE Site Service. Then the SMS_WSUS_SYNC_MANAGER "couldn't download all files" went away and the SMS_NOTIFICATION_SERVER also installed. Cleared out the only errors I had. left in "monitoring".