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sounds like the update you're running will just update the patches, dats etc. In order to upgrade the actual product you need to use a deployment task.
Thanks for the info, that was exactly what the issue was.
If you are new to ePO, take a look at some of the video tutorials available on the ServicePortal (http://mysupport.mcafee.com). Click on the View Tutorials link and drill into ePO.
Hope this helps!