AU is completely broken. It is ignoring the users settings as well. I have tested with following cases.

Install Jre 6u10 b13 pit and try to do an AU using any of these steps
1.) AU using RunAtExactSchedule
2.) Modifying the update schedule to daily and run it based on user setting
3.) Modifying the System date and time and again run the Jusched.exe
4.) Restarted the machine; Jusched.exe is automatically launched after reboot.
5.) Log off and re-login; Jusched.exe is automatically launched after re-login.

None of these cases are working as expected. It is surely a stopper. As it is ignoring the user's update settings and modifying it to something else. Which should not happen at any cost.

To make it work; we need to again set the update schedule and run the "Jusched.exe". It will work fine.

Now just perform a manual update; It works fine.