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I've seen this before. Make sure file sharing is enabled on the client. You should be able to open "\\COMPUTER-NAME\c$" from the ePO server. If not you could check a client's network properties to enable it. I have looked around to see if there was a group policy that could set it, but it looks like you have to physically be in front of the machine.
Since enabling File Sharing is not an option for many organizations - government agencies in particular, we're trying various methods of batch file deployment, scheduled tasks, login scripts, but are still having issues - particularly with Windows 7. Scheduled Tasks and XP worked reasonable well, but I havent' been able to get it to work on W7 RTM.
It would be really helpful to have a functional msi install, but McAfee doesn't seem to want to provide one.