I have been given a solution to this problem. The removable USB flash drive with the Windows to go installation needs to be recognized as a local hard disk to enable Windows Updates to download and install. The standard USB storage driver within the windows to go system needs to be changed so that the removable drive appears to be a fixed local drive.
Thanks to:
http://www.eightforums.com/windows-updates-activation/6954-windows-go-win8-rp-windows-update-check-fails-8007005-a.html#post96443
http://www.ehow.com/how_5941768_make-flash-drive-local-disk.html
and the author of the driver:
http://www.lancelhoff.com/downloads/
The file is USB_LocalDisk.zip
Thankyou