Hey Everyone! First off I just to let everyone know I'm new to McAfee and that these forums has saved my butt on a number of occations compared to the useless support I get directly from McAfee. We need to make sure we keep these posts coming!
I was able to fix the problem with checking in the latest VSE 8.7 package (VSE870LMLRP2.zip), VSE 8.7 Hotfix (VSE870HF517265.zip) and epo engine 5400 (epo5400en.zip found under the security updates on McAfee's download page) into EPO 4.5 and force an update.
So far so good, I will let everyone know if things start to act up again.