I was trying to install Windows Server Update Services (WSUS) on a fresh Windows Server 2012. I wasn't expecting any errors, as it was built on a fresh installation. To my surprise, the error prompted "Fatal Error: Failed to start and configure the WSUS service" when the installation was supposed to be completing. So far, it wasn't a pleasant experience on deploying the new WS8, as there were minor annoying bugs around. When a service wasn't running properly, you'll probably do better to uninstall and install the same service again, especially for in place OS upgrade.
I did the same trick again but the problem still persisted. When I opened the temp log file, I saw
2012-11-14 11:25:12 StartServer encountered errors. Exception=The request failed with HTTP status 503: Service Unavailable.
2012-11-14 11:25:12 Microsoft.UpdateServices.Administration.CommandException: Failed to start and configure the WSUS service
at Microsoft.UpdateServices.Administration.PostInstall.Run()
at Microsoft.UpdateServices.Administration.PostInstall.Execute(String[] arguments)
Fatal Error: Failed to start and configure the WSUS service
It must have to do with the IIS service. I checked the service and it was running fine. Restarting IIS service won't help either. On the IIS manager console, I stopped and deleted the "WSUS Administration" site. Re-start WSUS installation service process. Finally, the installation is complete!
Tips: In Windows Server 2008, TCP port 80 is used by default. In Windows Server 2012, TCP 8530 is used for HTTP and TCP 8531 for HTTPS. Be sure to enable the necessary firewall ports and direct WSUS clients to the correct ports e.g. http://wsus-server:8530 for http update