In the package server agent logs are a series of the same warning and error sequences (excerpts of the log):
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Description: Error while downloading package: HTTP Request Failed: Access is denied. (-2147024891)
Description: Download Package failed: HTTP Request Failed: Access is denied. (-2147024891)
Description: HTTP Request Failed: Access is denied. (-2147024891)
Description: GetFiles 'HTTP://Server.FQDN/Altiris/Packages/%7B14351f90-ae08-4c57-a19a-accd493aa63b%7D/Windows6.1-KB974571-x64.msu'->'\\Server\Library\Patches\42a83b6d-4405-40d9-bd80-decdde6b76f2
Description: Cannot create directory: 0x80070005 [Access is denied] \\Server\Library\Patches\42a83b6d-4405-40d9-bd80-decdde6b76f2
Description: Unable to set security for file '\\Server\Library\Patches\42a83b6d-4405-40d9-bd80-decdde6b76f2', Error:The system cannot find the file specified(2)
Description: Unable to get buffer length for SD of file '\\Server\Library\Patches\42a83b6d-4405-40d9-bd80-decdde6b76f2' (2)
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ITMS 7.x, 8.x
\\%COMPUTERNAME%\Library\Patches\<guid>
The problem was that only local administrators had rights to the share and not the agent logon account. Group everyone had "Read" rights.Added the agent logon account as a trustee of the volume/path (or promoted the rights of group Everyone) giving the following rights:
Read, Write, Modify