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I have a few questions regarding updating. Does WSUS update Windows XP? I select the one named Win XP/Server 2003 X64 editions. Is this for XP or 64 bit XP or Server 2003 64 bit only???? I tried to update an update a XP machine and it didn't work???? Next question...To update this to current every month after windows updates do I just rerun the main wizard and it sees all the previous updates and only does the ones I need or do I need to do the entire thing over each time? Thanks.

You need to use the win xp version on the legacy tab.
There are not many machines running the x64 version.

Wsusou will only download the new updates. Also it will remove the replaced ones. So you do not dowload any unneeded update or double download them.