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ePO detects McAfee USB encrypted device as having virus/malware

This is the second time this has happened.  After installation of the McAfee Encryption client 1.2.0.122 user plugs drive in and goes throught the installation.  The ePO system is detecting is as having virus/malware that cannot be reomoved.  Event ID 19024 category = Unknown category, Unwanted program detected and NOT removed, Virus detected and NOT removed.  Has anyone else run into this problem?  ePO server and client is 4.0

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