This information came directly from Apple's KB:
- Update your server to Mac OS X Server v10.6.8 (or 10.7)
- Stop the Software Update service if it is running.
- Quit Server Admin if it is active.
- Update /etc/swupd/swupd.plist to begin hosting OS X Lion software updates. (See details below.)
- Update /etc/swupd/swupd.conf to allow OS X Lion computers to receive updates. (See details below.)
- Open Server Admin and start the Software Update service.
- Use the instructions in Mac OS X Server v10.6: Using the Software Update service with multiple Mac OS X client versions to point your OS X Lion clients to this server.
For Mountain Lion change the string to:
In step 5, you will need root access to update the file /etc/swupd/swupd.conf. To be safe, make a backup copy of the file before editing it. Locate the following line near the end of the file:
Edit the following line to read: