I have been using AppUpdater for a few years now. I finally had to upgrade the server to windows Server 2003.
w2k3 requires couple of additional steps, there are bunch of articles out there.
However I found Erik Porters Post which summarized it perfectly here is a link to his post: Setting Up the AppUpdater Component to work with Windows Server 2003
Here is the are the steps I borrowed :) from his Blog Post
Open up IIS
Click on the Web Service Extensions node
Click on WebDAV
Click the Allow button
Under Web Sites, navigate to the folder that will hold all the different versions of your applications, in my case, a folder called “versions“.
Right mouse click on the “versions” folder and click Properties
Click the Create button to make it an IIS Application
Click the Configuration button
Select .config in the application extensions list
Click the Remove button and hit OK
Check the “Directory browsing” checkbox and hit OK