Do the following:
1. Reboot the computer.
2. Uninstall liveupdate 3.3
3. Delete the folders:
C:/Program data/Symantec/Liveupdate and C:/program files/Symantec/Liveupdate.
4. Now, export a managed client install package from SEPM, with the box " create a single.exe" unchecked.
5. Now replace the files, luall.exe and luchk.exe from this exported package from these files in the DVD/SEP folder.
6. Now run the SETUP.exe from the exported package... it should work..
If tyou install RU^ MP1 or higher, you should not face the issue...if possible, try installing RU6 mp1 or higher