Your GUP servers don't know they are supposed to be GUP servers... (based on the fact they are showing FALSE under the GUP field, and the SharedUpdates folder doesn't exist) They will only know they are supposed to serve as GUPs if you have a LiveUpdate Policy applied to their group that tells them to be GUPs.
The way I do it for 2 of my clients is to setup "locations" in each group (server and workstation groups) and apply the appropriate Live Update server to the location. So if a client has an IP in a specific range, it knows it is in Location X and should use the LiveUpdate policy and GUP server defined for location X.
So yes, you should have the same LiveUpdate policy defined for your Servers AND your workstations, but you should use Location Awareness to differentiate between which clients on which network should use which GUP server.
Hope this makes sense... I have one client with 140 different remote locations and GUP servers and they work great. I have had to learn a lot of the pitfalls to getting GUPS working properly the hard way ;)