We have installed VSE 8.8 on W2K8 servers which are not managed by EPO so had to follow the soloution here to get the update mechanism to work from a local network repository
However while we can now get the updates to work if the auto update repository settings are set to use the logged on account we cannot get the auto update to work if we specify credentials in the autoupdate repository settings.
When setting up the repository the credentials appear to be entered correctly but when you go to review them only the domain and user are stored with the password entry sections now appearing blank.
When you check the sitelist.xml file the common framework folder there is no encrypted password stored as I would expect.
If we reinstall VSE 8.7 on the same machine credentials for the repository are stored as expected, the sitelist.xml file has an encrypted password and the updates work.