WSUS 3.0 SP2 An unexpected error occurred, and this wizard must be closed mesage

Problem:
SCCM 2012 R2 SP2 on Windows Server 2008 R2 x64
Installed WSUS 3.0 successfully however at end of install (after pressing finish) an error message appears stating: An unexpected error occurred, and this wizard must be closed. you may restart the WSUS server configuration wizard from the options page in the wsus 3.0 console.
I installed WSUS in custom port: 8530
in event log
Error 7053, 12052, 12042, 12032, 12012
DDSAuthentication Web service is not working
SimpleAuthWeb, ClientWebService, Server Sync web service, API remoting web, and reporting web service is not working..


Solution:
Problem was in IIS Application Pool for WSUSPool. Had to change it from Network Service to Local System. WSUS worked immediately. Very strange.

My SCCM 2012 was synchronizing fine until I had the SP1 installed, which messed it up and I had to install KB2720211 + KB2734608  to fix the problems.