Manley, two-time runner-up at Purfleet’s Circus Tavern, lost 4-2 in their third-round clash and was under the cosh right from the start when his opponent took the first set with a brilliant 11-dart leg.
The Carlisle-based 42-year-old went 2-0 down before levelling the match.
But Schenk, who had come through two rounds to reach this stage, refused to buckle and got on top again as Manley’s frustration began to show.
Earlier, Chris Mason just got the better of ‘Diamond’ Dave Askew in a classic confrontation.
In a match of stunning quality, the 35-year-old from Bristol was never ahead until he won the last two legs to emerge a 4-3 winner.
The eagerly-awaited grudge match failed to produce any fireworks as Andy Jenkins trounced bitter rival Peter Evison for the loss of only one leg.
Dennis ‘The Menace’ Priestley recorded a 4-1 win over Lionel Sams in a dour spectacle, while 1988 world champion Bob Anderson repeated last year’s win over Dennis Smith as he triumphed 4-2.