Hi

I am trying to configure to install SCCM 2012 to install. No clients are getting updated. Earlier we has WSUS. But I have configured SCCM as SUP and used the same ip of WSUS. As we have stopped using WSUS.

I have also changed the policy to point toward the SCCM server at port 8530. But the error in WUAHandler.log is 

Group policy settings were overwritten by a higher authority (Domain Controller) to: Server http://wil-wnr-sccm:8530 and Policy ENABLED

Failed to Add Update Source for WUAgent of type (2) and id ({66A6C104-F6E1-4A5D-9EA2-20B870668F5F}). Error = 0x87d00692.

I know this a problem with group policy. how to solve it permanently for all PC's.

Just remove the GPO for setting the Updates Server.

Like Torsten said you can remove the GPO then the local GPO that the clients create will be applied or you could change your current GPO to point to the ConfigMgr SUP.