I just spent 1.5 hours troubleshooting this problem and here are the notes:
1. Small Business Server 2011 Standard. This is technically not supported and potentially, we could have thrown in the towel.
3. The problem is that the when you click on the System Settings tab, it would freeze lmtools.exe. The only way to stop it was to use the Task Manager.
4. When you click on the Perform Status Inquiry, it would mention various errors. Depending on what was changed in the settings, it would be: -97, -15, -13.
5. The debug log and the Task Manager processes [adskflex.exe and 2 x lmgrd.exe] would indicate the the license server was running. In reality, the license server was not running.
The solution in this case was to simply update the Network License Manager to the IPv6 version. Once this was done, the System Settings tab didn't freeze or lockup and everything behaved perfectly.
Thanks to Amy Biedenkapp for confirming that this was indeed the problem.