Good catch Mark, that is an area of the prefs that I don't often need to delve into from a support perspective.
Mine shows 1, which is expected being in a managed environment where I do get the latest updates to install. As long as that change persists for you, it does look like it should fix the issue. If it does not, you may try exiting PGP Services, renaming the two .xml files, and starting PGP Desktop again. It should go through the user creation again, and generate new PGPpolicy.xml and PGPprefs.xml files.
Honestly, if changing the value to 0 works for you, the simplest solution is often the best.
Does that update server show up under the section of Keyservers? Open that PGPprefs.xml file in wordpad and do a search for update01.pgp.com. It is more out of curiousity than anything else, but if that server is listed, check the value of isConfigServer under the server. Does it say <true></true>?