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what version of 2008 do you have? If you are still on 15.0.x.x this seems to have changed for 15.5.x.x liveupdate is asking people to reboot in this thread.......
If you need to update to the 15.5 version then click here...
I’m on 15.5.0.23, which I believe is the latest and greatest.
yup same here..... 15.5.0.23
liveupdate did pop up and tell me to reboot the other night, without me having to run it manually, when the FF3 update was released (before the pulled it because of the chinese character problem).
so could the symantec staff tell us if the way liveupdate works changed between 15.0.x.x. and 15.5.x.x??
CountryGuy,
Thanks for the thorough analysis. I've talked with the LiveUpdate guys and they confirmed that under some circumstances, if you have a package that requires a reboot waiting you may not automatically receive packages that do not require a reboot. They are working on a solution for this but I don't have a timeframe available.
I don't have any information about why you aren't receiving the notification though...
No problem, just trying to give you all the information so you can help me 
Just to give the full set of info, I have LiveUpdate version 3.4.1.232 installed, and the following settings (from Control Panel):
Express Mode, Automatically Start / Exit session
Automatic LiveUpdate every 120 minutes
I'm running Windows Vista Ultimate 64 bit, with IE locked down (Internet Zone is set to High Security, Trusted Zone set to Medium-High, *.symantec.com is part of that trusted list). Only other real change to the system is I've disabled some Windows services that I didn't *think* I needed running; Does the notification depend on any particular Windows services?
If I could figure out how to get npcLUStb.exe to run via Task Manager, I'd be set as an alternative (I'd just set that to run once a day at night), but it won't work thus far.