I know that it is normal to see some of those entries in the logs but the fact that I have thousands is alarming.
A lot of NETBIOS traffic logged (blocked or allowed) is common for a Windows system. You'll want to evaluate if this traffic should be allowed or blocked (is it causing any functionality issues). If the traffic is not needed, then let the HIPS Firewall continue to block the traffic. The reason you see all this blocked traffic is because you have the "Log all blocked" traffic enabled in the HIPS Activity Log. This behaviour is normal.
All of the IP's appear to be local IP's from my network and there are no events logged in the ePO server for this machine. Has anyone seen this type of activity before?
Host IPS Firewall traffic is not logged to the ePO server.