Your subscriber object doesn't have the correct identity. The identity category should be the category of "router.getServerProxy().ice_getIdentity().categor y" instead (see section 39.4.5 of the Ice manual):
Code:
Demo.UpdateClient servant = new UpdateClientI();
Ice.Identity id = new Ice.Identity();
id.category = router.getServerProxy().ice_getIdentity().category;
id.name = Ice.Util.generatedUUID();
Ice.ObjectPrx proxy = adapter.add(servant, id);
You can increase the tracing in IceStorm for subscribers by setting the property IceStorm.Trace.Subscriber to 1 for example.
Hope this helps!
Benoit.