The molecular dynamics during the formation of a polymer dispersed liquid crystal (PDLC) was followed by dielectric relaxation spectroscopy in the frequency range from 10(-1) to 2x10(6) Hz and over the temperature range from 158 to 273 K. The composite was produced by thermal polymerization induced phase separation of a mixture of triethyleneglycol dimethacrylate and the nematic liquid crystal, E7, in the proportion of 60:40 w/w. Both monomer and liquid crystal vitrify upon cooling having glass transition relaxation processes already characterized by some of us; yet E7 was previously studied in a narrower frequency range, so the present work updates its dielectric behavior. The starting mixture exhibits a rather complex dielectric spectrum due to the detection of multiple processes occurring simultaneously in the monomer and liquid crystal constituents. The PDLC formation occurs by mobility changes essentially in the liquid crystal tumbling motion, while the main relaxation of the monomer depletes upon polymerization. A low intense secondary process of E7 hardly detected in the bulk material is enhanced in both starting mixture and final composite allowing its characterization.