Issues with upgrading client from 1.2 to 3.0

Question

I've upgraded a bunch of Mac's ARD client from 1.2 to 3.0 using ARD 3 admin's upgrade client feature. On some, I can't Observe or Control. So far I can copy files, run reports, and see current status. I can also ssh into machines with no problems. I've run the updater a second time and no go.
All of these Macs were on 10.3.6. So sshed into them and ran all updaters and repaired permissions. Then upgraded ARD client.
Any thoughts on whats the cause of this problem and how to remedy it?
Any suggestions is appreciated.

Answer 1

More info after some testing.
Noticed machines that started out with base OS 10.3.1 with subsequent updates are the ones having observe/control issue. Most update progressions: 10.3.2, 10.3.3, 10.3.6 combo, 10.3.9 combo.
Machines that started out with base OS 10.3.5 are not effected after upgrading to 10.3.9.
Repaired permissions, updated binding, re-applied 10.3.9 combo update to one machine with no change.
Removed client by taking following steps - KB 108021
$ sudo rm -rf /System/Library/CoreServices/Menu\ Extras/RemoteDesktop.menu
$ sudo rm -rf /System/Library/CoreServices/RemoteManagement/
$ sudo rm -rf /System/Library/PreferencePanes/ARDPref.prefPane
$ sudo rm -rf /System/Library/StartupItems/RemoteDesktopAgent/
$ sudo rm /Library/Preferences/com.apple.ARDAgent.plist not applicable in any of my configs
$ sudo rm /Library/Preferences/com.apple.RemoteManagement.plist
Built an client installer package using ARD 3 admin and still can't Observe/Control but most other items seem to function.
I'm suspecting this has to do with base OS these machines were built on. Running out of ideas. I would like to find out whats preventing me to control machine instead of rebuilding a bunch of machine. Any input is appreciated.