Alas,
I tried out the non-maplex below, which is basically exactly the same code, but without the usage of maplex, but I don't get to see any labels either. :/
Note that this code also works on ArcGIS Server 9.2.
Thanks though...
IAnnotateLayerPropertiesCollection annoProps = ((IGeoFeatureLayer)layer).getAnnotationProperties();
IBasicOverposterLayerProperties4 overPoster = (IBasicOverposterLayerProperties4)serverContext.createObject(BasicOverposterLayerProperties.getClsid());
overPoster.setNumLabelsOption(esriBasicNumLabelsOption.esriOneLabelPerName);
overPoster.setFeatureType(ags.FEATURE_TYPE_POINT);overPoster.setPointPlacementMethod(esriOverposterPointPlacementMethod.esriAroundPoint);
overPoster.setPointPlacementOnTop(false);ILabelEngineLayerProperties labelEngine = (ILabelEngineLayerProperties)serverContext.createObject(LabelEngineLayerProperties.getClsid());
labelEngine.setBasicOverposterLayerPropertiesByRef((IBasicOverposterLayerProperties)overPoster);
labelEngine.setExpression("NAME");
IFormattedTextSymbol annoSymbol = (IFormattedTextSymbol) serverContext.createObject(TextSymbol.getClsid());
annoSymbol.setSize(10);
RgbColor color = (RgbColor) serverContext.createObject(RgbColor.getClsid());
color.setRed(255);
color.setGreen(0);
color.setBlue(0);
annoSymbol.setColor((IColor) color);
Font font = new FontProxy(ags.getContext().createObject(SystemFont.getClsid()));
font.setName("Courier New");
font.setBold(false);
font.setItalic(false);
font.setUnderline(false);
annoSymbol.setFont(font);
labelEngine.setSymbolByRef(annoSymbol);
IAnnotateLayerProperties annoLayerProps = (IAnnotateLayerProperties) labelEngine;annoLayerProps.setDisplayAnnotation(true);
annoLayerProps.setLabelWhichFeatures(esriLabelWhichFeatures.esriVisibleFeatures);annoProps.clear();
annoProps.add(annoLayerProps);((IGeoFeatureLayer)layer).setDisplayAnnotation(true);