WSUS installation on SCCM 2012 R2

For the life of us we cannot install WSUS on our SCCM 2012 R2 server.
We tried the \wsusutil.exe postinstall SQL_INSTANCE_NAME="ABC\SUSDB" CONTENT_DIR=X:\WSUS
We keep getting this error message below, and the highlighted part is the problem.
The account we are using has access to 'local admin' rights of the SCCM box. Also access to SQL
We have the proper permissions on the folder, adding also Network Service, etc.
We cannot get WSUS up and running and keep hitting a wall.   It will not create WSUS website
Any suggestions would help.
014-01-31 22:49:42  Setting content location...
2014-01-31 22:49:42  Fetching ContentDir from registry store
2014-01-31 22:49:42  Value is W:\WSUS
2014-01-31 22:49:42  Swtching DB to multi-user mode......
2014-01-31 22:49:42  Finished setting multi-user mode
2014-01-31 22:49:42  Writing DB settings to registry...
2014-01-31 22:49:42  Marking PostInstall done for UpdateServices-WidDatabase in the registry...
2014-01-31 22:49:42  Starting service W3SVC
2014-01-31 22:49:43  Configuring IIS...
2014-01-31 22:49:43  Start: ConfigureWebsite
2014-01-31 22:49:43  Configuring website on port 8530
2014-01-31 22:49:43  System.ComponentModel.Win32Exception (0x80004005): The system cannot find the file specified
   at System.Diagnostics.Process.StartWithShellExecuteEx(ProcessStartInfo startInfo)
   at System.Diagnostics.Process.Start(ProcessStartInfo startInfo)
   at Microsoft.UpdateServices.Administration.UseCustomWebSite.ExecuteIisCustomAction(String arguments)
   at Microsoft.UpdateServices.Administration.UseCustomWebSite.Install(Int32 portNumber)
   at Microsoft.UpdateServices.Administration.UseCustomWebSite.InstallAndConfigure(IisConfiguration& iisConfiguration, Int32 newPortNumber)
   at Microsoft.UpdateServices.Administration.PostInstall.ConfigureWebsite(Int32 portNumber)
   at Microsoft.UpdateServices.Administration.PostInstall.Run()
   at Microsoft.UpdateServices.Administration.PostInstall.Execute(String[] arguments)

Have you seen
http://social.technet.microsoft.com/Forums/windowsserver/en-US/e1003863-e331-46da-8803-e8625bb6324b/server-2012-wsus-postdeployment-configuration-fails-comprehending-the-log-file?forum=winserverwsus ?
Jason | http://blog.configmgrftw.com

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