Audit Failure errors

I thought the created user for the EminentWare service only needed logon as a service on the local box permissions yet it seems as if it is trying to logon across the network to a computer in which case it would need those additional permissions. What am I missing here?

I have been getting 2 audit failure errors when trying to do any kind of update management on any pc. The errors are:

1.

Event Type: Failure Audit
Event Source: Security
Event Category: Account Logon
Event ID: 680
Date: xxxxxxx
Time: xxxxxxx
User: NT AUTHORITY\SYSTEM
Computer: Network workstation
Description: 
Logon attempt by: MICROSOFT_AUTHENTICATION_PACKAGE_V1_0
Logon Account: [color=red:ceee0e24d3][b:ceee0e24d3]ewdgssvc-25957[/b:ceee0e24d3][/color:ceee0e24d3]
Source Workstation: WSUS\EminentWare server
Error Code: 0xC0000064

2.

Event Type: Failure Audit
Event Source: Security
Event Category: Logon/Logoff
Event ID: 529
Date: xxxxxx
Time: xxxxxx
User: NT AUTHORITY\SYSTEM
Computer: Network workstation
Description:
Logon Failure:
Reason: Unknown user name or bad password
User Name: [color=red:ceee0e24d3][b:ceee0e24d3]ewdgssvc-25957[/b:ceee0e24d3][/color:ceee0e24d3]
Domain: WSUS\EminentWare server
Logon Type: 3
Logon Process: NtLmSsp
Authentication Package: MICROSOFT_AUTHENTICATION_PACKAGE_V1_0
Workstation Name: WSUS\EminentWare server

Thanks,
Richard