Trying to give something back to the Community...
Microsoft have just updated the following KB and I've updated the List of ConfigMgr KB Articles on FAQShop accordingly:
http://support.microsoft.com/kb/978021/en-us?sd=rss&spid=12769
The Distribution Manager that is in System Center Configuration Manager 2007 SP2 does not honor the "Number of retries" and "Delay before retrying (minutes)" retry settings
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