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SEP client does not register or get update from SEPM server

Created: 22 Jan 2008 • Updated: 02 Mar 2009
I know the topic sounds familiar, but I got this strange log from sylink watcher on an individual client (happens to be SEPM server itself!!) that cannot find or register itself to server:
01/22 16:46:16 <SendRegistrationRequest:>
01/22 16:46:45 <ScheduleNextUpdate>Manually assigned heartbeat=1 seconds
01/22 16:46:46 <SendRegistrationRequest:>ERR to query SMS return code=-9
01/22 16:46:46 <SendRegistrationRequest:>LastError=12152
01/22 16:46:46 <SendRegistrationRequest:>SMS return=0
01/22 16:46:46 <ParseHTTPStatusCode:>0=>Uninterpreted Status
01/22 16:46:46 <SendRegistrationRequest:>ERR to query content length
01/22 16:46:46 <SendRegistrationRequest:>Content Lenght =>
01/22 16:46:46 Throw Internet Exception, Error Code=12019;AH failed to read internet file
01/22 16:46:47 CInternetException: <SendRegistrationRequest:>: The handle is in the wrong state for the requested operation
and after that it goes through endless loop of connecting and disconnecting to server(s),
any ideas?