It seems as if there should be more updates from WSUS...possibly its not receiving any?
It's set to get updates for Windows 7 and Windows Server 2008 R2. Critical updates, definition updates, security updates, update rollups, and updates.
Is it possible I set it up wrong somehow?
UPDATE: If I go to Win7 PC and click "Check online for updates from Microsoft Update", it finds a Definition Update for MSE, but not if I check for updates regularly using the WSUS settings ("You receive updates: Managed by your system administrator").
MSE is a separate item in WSUS. Go to Options > Products and Classifications > and make sure you have Microsoft Security Essentials selected.
I don't see anything wrong here. I have a similar setup and show a similar synchronization history. Microsoft doesn't release updates every day (I don't know what I'd do if they did), and you only see numbers in this report when you download new or revised updates.
With a few exceptions, Microsoft releases patches on the second Tuesday of every month. Look at the sync log next Wednesday - it should show a number of patches synchronized.