"The Background Intelligent Transfer Service service terminated with service-specific error 2147942403"

I have a very specific problem I need help with. The PC in question is in running Windows 2000 Pro SP3. Automatic updating is partly working: the critical updates are recognized, but never downloaded, because the Background Intelligent Transfer Service (BITS) service won't start on this PC. When I try to start it, I get this error message:

Windows could not start the Background Intelligent Transfer Service on Local Computer. For more information, review the System Event Log. If this is a non-Microsoft service, contact the service vendor, and refer to service-specific error code -2147024893.

When I look in the Event Log, I see this error message from the Service Control Manager:

The Background Intelligent Transfer Service service terminated with service-specific error 2147942403.

I found one technote somewhat like this in the Microsoft knowledgebase, but it applies only to Windows XP, and to PCs which have/had Terminal Services installed. (This PC never has.) I am a Windows Administrator on this PC, so there's no problem with rights. I should also mention that I have no other problems of any kind with this PC.

By default this PC uses our internal Software Update Services server, but I can reproduce the problem if I try to get automatic updates from Microsoft's WindowsUpdate site instead. Four other Win2000 SP3 and Windows XP SP1 PCs all start BITS successfully, and install all the updates from our Software Update Services just fine.

Any other ideas?

From the microsoft.public.windows.backgroundtransfer newsgroup
It appears that you do not have the following directory on your machine:

%ALLUSERPROFILE%\Application Data\Microsoft\Network

Create this directory and then do a 'net starts bits'.