Hello,
Could you also check if the SEPM is no more receiving the updates from Liveupdate Administrator.
You could check this by:-
1) Log in to SEPM
2) Click on Admin TAB
3) Click on Servers
4) Right click on "Local Site" and click on "Edit Properties"
5) Click on Liveupdate
6) Under Liveupdate Source Servers, click on "Edit Source Servers"
7) Click on "Use the default Symantec Liveupdate Server"
Secondly, Did you uninstall the Liveupdate Administrator (LUA) from the Add/ Remove Programs?
If yes, I see no reason, you need to keep that folder "C:\Program Files\Symantec\LiveUpdate Administrator1".
You surely could delete the Folder.
NOTE: Before deleting the Folder, just double check the contents are of LUA only.
Hope that helps!!