Thanks for everyones help. I restarted the both services and no change. I went into SEPM -Admin and clicked the Servers tab and checked those log entries. What I found is the following:
LiveUpdate retry started
LUALL.exe has been launched
LiveUpdate encountered one or more errors. Return code = 4
LUALL.exe finished running
LiveUpdate retry failed. Will try again.
All of this happend with a matter of a minute time frame.
I've changed my server to be the primary server to distribute defs and that is the only selection for the clients to receive from.