Hi,
I use LRS frequently and it does a better job than many proprietary asset management software packages.
At City of Mandurah we have four roads that are closed loops, i.e. the start and end are exactly the same point locations. This causes one of the points to be removed, which then generates the 'Not enough points' error. Could you consider making LRS keep duplicate points? I can send examples in Shapefile if required.
Thanks,