Hi Glenn,
For some odd reason, this product does not allow client updates to be scheduled when clients use the default management server to receive updates.
You may wish to cast a vote for the following enhancement request:
https://www-secure.symantec.com/connect/idea/gup-definition-schedule
Now: I understand that it's desired to have some of the SEP 11 clients go to the SEPM for their updates, and some of the SEP clients to go to the LUA 2.x server for updates. Is that currently configured in the LiveUpdate policies? (The LUA-only policy applied to the correct client group?) Or did you configure those by dropping a settings.hosts.liveupdate file on the SEP clients? (Was one dropped on the SEPM, by any chance?)
Is the SEPM itself still configured to go looking to the Internet LU source servers for updates, or is it configured to go to the LUA 2.x server as well? Check this KB and make sure the SEPM still knows to look to the Internet:
How to configure LiveUpdate to use alternate sources through the Symantec Endpoint Protection Manager Console
http://www.symantec.com/docs/TECH103706
BTW: do be sure that you are running the very latest release of SEP 11, SEP 11 RU7 MP3.
Please do keep this thread up-to-date with your progress!
Mick