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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\\%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.ITMS 7.x, 8.x
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