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I believe there is a manual method that involves removing it from the DB but I can't seem to find the KB. I remember our SAM sending it to us in the past so you may need to contact support for the instructions. KB66437 also says "Contact McAfee support for details on how to cancel/reschedule the scans." which makes it seem like that as well. Also take a look at KB58583 which mentions the error you're getting.
I have been told by Support that this is a DB issue, but they are un-sure of how to fix it (at 1st line support) and have passed it to 2nd Line Support.
I will post the 'fix' here once the issue has been resolved.
I'll peak in on Tier 2 tomorrow and see where this is at. If you get a chance post the SR number.
Appreciate your help Jeff, cheers.
Tier 3 resolved the issue, it was down to the EngineID changing. Raid (UK Tier 3 support engineer), said that when I upgraded to v7.0 it may have changed my engineID. He then made some changes to the Faultline DB and now all scans are 'pending' awaiting the scheduler to kick in .... and the 'paused' scan is no longer.
Kudos to Raid, the man is top notch.